Ontario, Canada’s most populous province and economic hub, has taken a bold stand against US tariffs by banning American companies from bidding on government contracts worth tens of billions of dollars.
The province also scrapped a major contract with Elon Musk’s Starlink, in response to US President Donald Trump’s new trade restrictions.
Premier Doug Ford announced the measures on Monday, stating that Ontario would no longer do business with US-based firms, blaming Trump for economic tensions between the two countries.
“Ontario won’t do business with people hellbent on destroying our economy. US-based businesses will now lose out on tens of billions of dollars in new revenues. They only have President Trump to blame,” Ford posted on X (formerly Twitter).
As part of the economic pushback, Ford declared that Ontario was “ripping up” a Can$100 million (US$68 million) contract with Starlink, signed in November 2024, to provide internet access to 15,000 homes and businesses in northern Ontario.
The satellite-based service, owned by Musk’s SpaceX, was scheduled to begin operations in June 2025. However, the deal has now been abruptly terminated amid escalating trade tensions.
Musk, the world’s richest man and a close adviser to Trump, has yet to respond to the move.
In a further escalation, Ontario’s government-run Liquor Control Board (LCBO) has started removing US beer, wine, and spirits from store shelves.
Other provinces, including Quebec, Nova Scotia, and British Columbia, have followed suit.
The LCBO is one of the world’s largest buyers of alcohol, selling nearly Can$1 billion worth of US-made drinks annually, covering about 3,600 products.
The decision to cut off American alcohol sales is expected to impact US beverage exports significantly.
Trump, who announced a 25% tariff on Canadian imports starting Tuesday, spoke with Canadian Prime Minister Justin Trudeau earlier on Monday.
He later posted on Truth Social that the two leaders would have further discussions on the matter.
With tensions rising, it remains to be seen whether diplomatic negotiations can ease the brewing trade war or if Canada will introduce additional countermeasures in response to US tariffs.