Elon Musk's Starlink satellite internet service faced a setback as Ontario's Premier, Doug Ford, announced the cancellation of a $68 million contract. The agreement, signed in November 2024, aimed to deliver fast internet to remote areas of the province. This decision emerged amid growing tensions over tariffs between the United States and Canada.
The move came after President Donald Trump declared a 25% tariff on nearly all Canadian imported goods. In retaliation, Canada implemented a similar levy on U.S. goods. However, the tariffs faced a temporary delay as President Trump opted to postpone the measures for 30 days. During this tense period, Prime Minister Justin Trudeau announced plans to station 10,000 "frontline personnel" along the 5,500-mile-long Canada-U.S. border as part of Canada's concessions.
Doug Ford's decision to terminate the Starlink contract was not solely based on economic factors. He stated that Elon Musk, a close confidant of President Trump, was part of an agenda that aimed to "destroy families, incomes, destroy businesses." Musk leads the Department of Government Efficiency (DOGE), a team within the Trump administration tasked with implementing significant cost-cutting and deregulation measures.
"[Musk] wants to take food off the table of people, hard-working people, and I’m not going to tolerate it," – Ford
The Ontario government also plans to prohibit other U.S. companies from securing future provincial contracts until the U.S. government lifts the tariffs. However, Ford's decision to cancel the Starlink contract was reportedly put on hold following Trump's decision to delay the tariffs.
This unfolding situation highlights the intricate interplay between international trade policies and local governmental decisions. Starlink has been actively seeking partnerships with local and national governments to expand its satellite internet service globally. The current impasse underscores the challenges businesses face in navigating geopolitical disputes.
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