The leader of Canada’s most populous province of Ontario said Monday that he’s ripping up a contract with Elon Musk’s Starlink internet service in response to U.S. President Donald Trump’s sweeping tariffs on Canada.
A senior Canadian government official also said that Canada isn’t confident that it can avoid the looming tariffs on Tuesday like Mexico did, because it feels like the goal posts shift more for Canada than Mexico. The official, who spoke on condition of anonymity, wasn’t authorized to speak publicly.
Trump and Mexican President Claudia Sheinbaum said Monday that their planned tariffs were on hold for a month to give time for further negotiations. The statement was confirmed by the White House.
Trump posted earlier on social media that he spoke with Canadian Prime Minister Justin Trudeau on Monday morning and would speak with him again in the afternoon. Both Canada and Mexico had plans to levy their own tariffs in response to U.S. actions, but Mexico is holding off for the moment.
Ban on American companies
Ontario Premier Doug Ford, who said that he was also banning American companies from provincial contracts, signed a Canadian $100-million ($68 million) with Musk’s company in November to deliver high-speed internet to remote residents in rural and northern Ontario.
“We’ll be ripping up the province’s contract with Starlink. Ontario won’t do business with people hellbent on destroying our economy,” Ford said.
“President Trump is the only person to be blamed. Maybe Elon Musk can call his buddy? This is one of the ramifications.”
Ford said that U.S.-based businesses would lose out on “tens of billions of dollars” in new revenue as a result of Ontario’s response.
“We just aren’t going to be using American companies,” Ford said. “And no matter if we are building a hospital, if we’re building anything, if we’re building a doghouse I want to make sure we are using Ontario steel, Canadian products, Canadian wood, Ontario wood, anything.
“I don’t care if it’s a toothpick. We need to purchase from Canada and Ontario.”
Ontario and other provinces already planned to remove American liquor brands from government store shelves. The Liquor Control Board of Ontario sells nearly CA$1 billion ($687 million) worth of American wine, beer, spirits and seltzers every year, Ford said.
“Canada didn’t start this fight with the U.S., but you better believe we’re ready to win it,” said Ford, who called an election for his province last week.
Ford said that he wants a four-year mandate that outlasts Trump’s term.
“He wants to come after us?” he asked. “I’ve yet to hear one American citizen say Canada is the problem.”
Canada and Mexico ordered retaliatory tariffs on American goods in response to sweeping tariffs imposed by Trump. Ford also encouraged businesses to put the Canadian flag on products so Canadians know what to buy.
“This is a tax on American citizens. That’s what Donald Trump is doing to his own people,” said Ford, who described Musk as part of the Trump team “that wants to destroy families incomes, destroy businesses. He want to take food off the table of hard-working people and I’m not going to tolerate it.”
Trump responded Sunday, criticizing Canada’s trade surplus with the United States and contending that without that surplus, “Canada ceases to exist as a viable Country. Harsh but true! Therefore, Canada should become our Cherished 51st State. Much lower taxes, and far better military protection for the people of Canada — AND NO TARIFFS!”
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