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Friday, April 4, 2025

Canada Blocks US Firms from Govt Contracts, Cancels Musk’s Starlink Deal

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Ontario, Canada’s most populous province and economic powerhouse, announced on Monday that it would bar US companies from bidding on government contracts worth billions of dollars. The province also canceled a deal with Elon Musk’s Starlink as part of a broader pushback against US tariffs.

“Ontario won’t do business with those determined to destroy our economy,” said Ontario Premier Doug Ford on X. “US companies will now lose out on tens of billions of dollars in new revenue. They only have President Trump to blame.”

Ford confirmed the cancellation of a Can$100 million (US$68 million) contract with Starlink, which had been signed in November to provide internet services to 15,000 homes and businesses in remote northern Ontario. Starlink was scheduled to begin providing service in June.

Musk, the world’s richest man and an advisor to US President Donald Trump, owns Starlink. This move comes as Trump prepares to impose 25 percent tariffs on Canadian imports starting Tuesday.

Additionally, Ontario’s liquor stores began removing US beer, wine, and spirits from shelves on Monday, a move echoed by other provinces like Quebec, Nova Scotia, and British Columbia. The Liquor Control Board of Ontario (LCBO), one of the world’s largest alcohol buyers, handles about Can$1 billion worth of US alcohol annually.

Trump spoke with Canadian Prime Minister Justin Trudeau earlier on Monday regarding the tariffs and mentioned they would continue their discussions later in the day.

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