Ontario Delays Threat to Cancel Starlink Deal Following Canada Tariff Relief
Ontario Pauses Retaliatory Measures Against U.S. After Tariff Relief
The Canadian province of Ontario announced on Monday that it would temporarily halt several planned retaliatory actions against the United States, including the cancellation of a C$100 million ($68.12 million) contract with Elon Musk’s Starlink. Premier Doug Ford made the decision following U.S. President Donald Trump’s announcement to postpone tariffs on Canadian imports for 30 days.
Earlier in the day, Ford had also revealed plans to ban U.S. companies from provincial contracts and direct the province’s liquor board to remove American products from its shelves starting Tuesday.
“We have some good news today. We have temporarily averted tariffs that would have severely damaged our economy, giving time for more negotiation and time for cooler heads to prevail,” Ford wrote on X. “With the U.S. pausing tariffs, Ontario will also pause our retaliatory measures.”
Ontario, Canada’s most populous province and its industrial hub, had signed an agreement with Starlink last November to provide high-speed internet to 15,000 homes and businesses in remote communities. Musk, a close ally of Trump, heads the U.S. President’s efforts to streamline federal operations.
Responding to Ford’s earlier threat to cancel the Starlink contract, Musk dismissed the move with a casual “Oh well” on X.
Trump had previously threatened to impose a 25% tariff on most Canadian imports, sparing only oil, which would face a 10% surcharge. Economists warned that prolonged tariffs could push Canada into a recession. The announcement sparked widespread concern across the country, which has long prided itself on a strong trading partnership with the U.S.
In retaliation, Canadian Prime Minister Justin Trudeau unveiled plans on Saturday to impose 25% tariffs on C$155 billion worth of U.S. goods.
Ford emphasized the ongoing uncertainty surrounding Canada-U.S. trade relations.”Make no mistake, Canada and Ontario continue to stare down the threat of tariffs … so long as our trading relationship with our largest trading partner is up in the air, we will continue to see many potential projects frozen and projects that were already under way put at risk,” he said.
