Ford cancels starlink contract and bans US companies from Ontario government contracts

Doug Ford is sending a clear message: Ontario is not going to be a punching bag in the trade war with the U.S. In a bold move, the Premier of Ontario has decided to cancel a $100 million contract with Starlink, Elon Musk’s satellite company. This deal, which was set to provide high-speed internet to 15,000 homes and businesses in rural Ontario, was supposed to bring much-needed connectivity to the province by 2025. But Ford wasn’t interested in playing nice when he saw his province’s economy being targeted by U.S. tariffs.

Ford made his stance clear: “It’s done, it’s gone”. The contract, meant to improve the quality of life for Ontarians, was discarded without hesitation. Why? Because Ontario is fed up with U.S. economic moves that hurt Canadians. This isn’t about just cancelling a project; it’s about drawing a line in the sand. Ford’s decision shows he won’t back down when it comes to standing up for Ontario’s interests.

It wasn’t just Starlink that felt the impact. Ford also went further, banning all U.S.-based companies from bidding on Ontario government contracts. This is a serious move, affecting about $30 billion in annual procurement contracts. The message is clear: if U.S. companies want to play in Ontario’s backyard, they’re going to have to get their house in order. Ford isn’t interested in doing business with companies that might turn around and use their position to undermine Ontario’s economy.

And just in case there was any doubt about how far Ford is willing to go, he took it a step further by warning U.S. lawmakers in New York, Michigan, and Minnesota that Ontario could slap a 25% surcharge on electricity exports if the tariffs don’t stop. Ontario is a major supplier of energy to these states, and Ford isn’t afraid to use that economic leverage to remind them that Ontario has power too.

The situation is clear: Ford is retaliating against U.S. actions. But let’s not kid ourselves—this is about protecting Ontario’s economy and sending a strong signal to the U.S. that it can’t just impose tariffs on Canadian goods without consequences. The U.S. may have imposed tariffs to address trade imbalances, but Ontario is making it crystal clear that it has its own interests to protect.

What gets lost in all this is the fact that the U.S. has been using tariffs to strengthen American industries for years. The tariffs aren’t about hurting Canada—they’re about ensuring American workers and businesses aren’t getting undercut by unfair trade practices. In many ways, Ford’s retaliation is almost a gift to the U.S. because it brings attention to just how fragile the global trade system really is.

The U.S. economy is focused on putting America first, and that’s exactly what President Trump intended with the tariffs. Ford’s moves may disrupt some businesses, but in the grand scheme of things, it’s a small price to pay for a fairer trade system. Ford may think he’s hitting back hard, but he’s really just playing into the hands of the very system that Trump is trying to break down—one that has long favored foreign nations at the expense of U.S. workers.

At the end of the day, Ontario’s retaliatory actions won’t change the broader picture: the U.S. is simply looking out for its own interests. In fact, Ford’s actions could end up being another wake-up call for those who still think the U.S. is going to sit idly by while others use unfair trade practices to exploit American industries. Canada is taking a hit, but the U.S. is winning in the long run.

Sources:

https://www.msn.com/en-us/news/canada/ontario-premier-doug-ford-to-hold-news-conference-after-trump-launches-trade-war/ar-AA1Aejzv

https://www.cbc.ca/news/canada/toronto/ford-us-tariffs-trump-ontario-retaliation-measures-1.7473968

https://www.france24.com/en/americas/20250203-canada-s-ontario-bans-us-firms-from-governmant-contracts-in-response-to-trump-tariffs

https://www.channelstv.com/2025/02/03/canadas-ontario-bans-us-firms-from-govt-contracts-dumps-starlink-deal/

https://www.blogto.com/tech/2025/03/starlink-ontario-contract/

https://betakit.com/its-done-its-gone-ontario-premier-doug-ford-cancels-100-million-starlink-contract-in-tariff-response/