In a bold response to new U.S. tariffs on Canadian goods, Ontario Premier Doug Ford announced Monday that the province is banning American firms from bidding on government contracts worth tens of billions of dollars. He also canceled a $100 million deal with Elon Musk’s Starlink, originally set to provide internet services to remote northern communities.
Ford made the announcement on X (formerly Twitter), attributing the decision directly to the U.S. government’s trade policies under President Donald Trump.
“Ontario won’t do business with people hellbent on destroying our economy. 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 posted.
As part of Ontario’s retaliatory measures, the province’s liquor stores have also begun removing U.S. beer, wine, and spirits from their shelves. Other provinces, including Quebec, Nova Scotia, and British Columbia, are implementing similar restrictions.
The Ontario government also scrapped its November 2024 contract with Starlink, a satellite internet provider owned by Elon Musk, citing the escalating trade tensions.
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Under the now-canceled Can$100 million (US$68 million) agreement, Starlink was set to provide high-speed internet access to 15,000 homes and businesses in Ontario’s remote northern regions starting in June 2025.
Musk, the world’s richest man and a close adviser to President Trump, has not publicly responded to Ontario’s decision.
In addition to blocking government contracts for U.S. firms, Ontario’s Liquor Control Board (LCBO) has begun phasing out American-made alcoholic beverages. The LCBO, one of the world’s largest single buyers of alcohol, supplies not just government-run liquor stores but also local restaurants, bars, and other retailers across the province.
Each year, the board purchases nearly Can$1 billion worth of U.S. alcohol across 3,600 different products. The move to cut U.S. imports is expected to significantly impact American beverage producers.
The trade standoff between Canada and the United States escalated after President Trump announced a 25% tariff on Canadian imports, set to take effect on Tuesday.
Earlier Monday, Trump spoke with Canadian Prime Minister Justin Trudeau about the tariffs. He later posted on his Truth Social platform that they would continue discussions later in the day.
Ontario’s aggressive countermeasures highlight growing tensions between Canada and the U.S., as both sides brace for the economic impact of the new trade policies.
