TORONTO (AP) — The leader of Canada’s most populous province, Ontario, announced on Monday the cancellation of the contract with Starlink, Elon Musk’s internet company, in response to the extensive tariffs imposed by U.S. President Donald Trump on Canada.
Ontario's Premier, Doug Ford, who said he will also ban American companies from signing provincial contracts, signed a $100 million Canadian dollar (68 million dollar) agreement with Musk's company in November to provide high-speed internet in rural and northern areas of Ontario.
"We are going to break the province's contract with Starlink. Ontario will not do business with people intent on destroying our economy," Ford stated on the social network X, which is also owned by Musk.
Ford said that starting on Tuesday and until the US tariffs are eliminated, Ontario will prohibit American companies from participating in provincial contracts.
He added that American companies will lose "tens of billions of dollars" in new revenue as a result of Ontario's response. "Blame President Trump," he emphasized.
Ontario and other provinces were already planning to remove American liquor brands from the shelves of government stores. The Ontario Liquor Control Board sells nearly $1 billion worth of American wine, beer, spirits, and seltzers each year, Ford noted.
“Canada did not start this fight with the United States, but they better believe we are ready to win it,” added the governor, who called for elections in his province last week.
Canada and Mexico imposed retaliatory tariffs on US products in response to Trump's tariffs.
Trump responded on Sunday, criticizing Canada’s trade surplus with the United States and claiming that without that surplus, “Canada ceases to exist as a viable country. Tough but true! Therefore, Canada should become our Beloved State 51. Much lower taxes and much better military protection for the people of Canada, AND NO TARIFFS!”.