Trump’s tariff war heats up: Canada hits back; Ontario bans US firms, to cancel contract with Elon Musk’s Starlink

Ontario Premier Doug Ford announced Monday (February 3) that the provincial government is cancelling a $100 million contract for satellite internet services with Starlink, the satellite communications company owned by billionaire Elon Musk. The decision comes in response to the recent imposition of 25% tariffs on most Canadian goods by US President Donald Trump, sparking tensions between the two neighboring countries.

"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 in his statement.

Ontario to ban American companies from provincial contracts

"Starting today and until U.S. tariffs are removed, Ontario is banning American companies from provincial contracts," Ford wrote. He emphasised that the Ontario government spends $30 billion annually on procurement, alongside a $200 billion infrastructure plan.

"U.S.-based businesses will now lose out on tens of billions of dollars in new revenues. They only have President Trump to blame," he added.

A strong retaliatory stance by Ontario

Ford made it clear that while Canada did not initiate the trade conflict with the US, the provincial government is prepared to fight back. "Canada didn't start this fight with the U.S., but you better believe we're ready to win it," he concluded, reflecting the growing tensions between the two neighboring countries.

Trudeau's retaliation for US tariffs

Canadian Prime Minister Justin Trudeau has already confirmed retaliatory tariffs on $107 billion worth of US goods, including a first round of duties set to take effect this week. Canada is also calling on its citizens to support local industries in light of the escalating trade dispute. The dispute has triggered a series of escalating economic measures between the two countries.

American liquor removed from Ontario shelves

Ford earlier in the day issued an order to remove American-made liquor from the shelves of the Liquor Control Board of Ontario (LCBO). "Every year, LCBO sells nearly $1 billion worth of American wine, beer, spirits, and seltzers. Not anymore," Ford wrote, marking a significant blow to US alcohol exports in Canada’s most populous province.