Ontario reverses its contract with Starlink after the ceasefire in the trade war.
The Premier of Ontario, Doug Ford, has canceled a contract with Starlink valued at approximately 100 million dollars. This decision will remain in effect until the Canadian tariffs are lifted.
The trade situation between Canada and the United States is at the center of a new development following the announcement by Canadian Prime Minister Justin Trudeau and former President Donald Trump, who have decided to suspend the tariff confrontation for a period of thirty days. In this context, Ontario Premier Doug Ford announced on X that he will also halt the cancellation of his province's contract with Starlink, Elon Musk's company, which was valued at $100 million. Ford stated, "With the United States pausing tariffs, Ontario will also pause our reactive measures. If President Trump continues with tariffs, we will not hesitate to pull American products from the shelves of the LCBO or to prohibit American companies from participating in provincial procurements."
The premier emphasized the necessity for the United States and Canada to remain united against what he views as a true trade war against China. This announcement comes amid tensions between the two countries, where Ford has taken drastic measures, including the annulment of a significant contract with Starlink. The agreement, signed in November, aimed to provide internet services to remote areas of Ontario.
Trump's decision to impose a 25% tariff on almost all Canadian imports led Canada to respond with a similar measure against products coming from the United States. This escalation has prompted Ford to prohibit American companies from participating in provincial contracts, affecting a market where the Ontario government spends approximately $30 billion annually on procurements.
Ford has not hesitated to link Musk to the tariff situation, stating that the province will not do business with those who, in his opinion, seek to harm the Canadian economy. Consequently, the premier has asked the Liquor Control Board of Ontario (LCBO) to remove alcoholic beverages of American origin from its shelves. "Every year, the LCBO sells nearly one billion dollars' worth of American wine, beer, and spirits. No more," he declared. Ontario, which has a population of over 16 million people, is seeing a shift in product availability due to these actions. Musk, in response to Ford's decision, simply commented "oh well" on X.