Ontario, Canada’s largest province and a key driver of its economy, announced a major retaliation against U.S. tariffs on Monday, February 3, banning U.S. companies from bidding on government contracts worth tens of billions of dollars and cancelling a deal with Elon Musk’s Starlink.
“Ontario won’t do business with people hellbent on destroying our economy,” Premier Doug Ford said on X. “U.S.-based businesses will now lose out on tens of billions of dollars in new revenues. They only have President Trump to blame.”
Ford revealed he had cancelled a CAD 100 million (USD 68 million) contract with Starlink, a Musk-owned company, that was set to provide internet services to 15,000 homes and businesses in remote northern Ontario starting in June. The deal, signed in November, was aimed at improving connectivity in hard-to-reach areas using Starlink satellites.
This move comes in direct response to U.S. President Donald Trump’s decision to impose 25% tariffs on Canadian imports, set to begin Tuesday. Musk, the world’s richest man, is a close adviser to Trump, further fueling Ontario’s decision to sever ties with Starlink.
In addition to the contract cancellation, Ontario’s government-run liquor stores began removing U.S. beer, wine, and spirits from their shelves on Monday. Other provinces, including Quebec, Nova Scotia, and British Columbia, followed suit. The Liquor Control Board of Ontario, one of the largest alcohol buyers globally, sells nearly CAD 1 billion worth of U.S. alcohol annually, comprising about 3,600 products. These measures are expected to significantly impact U.S. producers.
Trump, meanwhile, indicated ongoing discussions with Canadian Prime Minister Justin Trudeau. In a post on Truth Social, Trump confirmed he had spoken with Trudeau earlier in the day and said they would speak again later.