Ontario cancels Starlink contract

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Ontario Premier Doug Ford recently made a significant announcement: the province will be terminating its contract with Elon Musk’s Starlink. This decision comes in the wake of U.S. tariffs that have posed substantial economic challenges for Canada.

The contract, initially signed in November, was intended to bring high-speed internet access to approximately 15,000 homes and businesses in rural, remote, and northern communities across Ontario by June 2025. However, Ford declared, “Ontario won’t do business with people hellbent on destroying our economy”.

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The U.S. tariffs have created economic difficulties for Canada. President Trump’s executive order has placed a 25% levy on nearly all goods imported from Canada, with energy products facing a 10% tariff. In response, Ontario has decided to prohibit American companies from provincial contracts until these tariffs are lifted.

The cancellation of the Starlink contract is part of a broader strategy to safeguard Ontario’s economy. Ford emphasized that U.S.-based businesses will miss out on significant revenues due to this decision. The province is also exploring other solutions to ensure that rural and remote areas still receive high-speed internet access.

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The trade tensions between the U.S. and Canada are expected to have extensive consequences. Economists warn that if the trade war continues, Canada could face its most severe economic impact since the COVID-19 pandemic. The tariffs and counter-tariffs are likely to affect various sectors, including agriculture, manufacturing, and technology.

Sources:

https://x.com/MarioNawfal/status/1886404751782502821

https://www.msn.com/en-ca/news/canada/ford-ripping-up-ontarios-100m-contract-with-elon-musks-starlink-in-wake-of-us-tariffs/ar-AA1yknqJ

https://www.msn.com/en-us/news/world/ontario-premier-says-hes-ripping-up-100m-contract-with-musks-starlink-in-response-to-us-tariffs/ar-AA1ykAQ3

https://www.straitstimes.com/world/ontario-cancels-starlink-contract-wont-do-deals-with-us-firms


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