Ontario Restores $68M Starlink Contract After US Tariff Dispute

Ontario Pauses Starlink Contract Amidst Trade Dispute

Doug Ford, the Premier of Ontario, announced on Monday via X (formerly Twitter) that the provincial government would be suspending its $68 million contract with Starlink, the satellite internet service operated by Elon Musk. This decision followed an announcement by President Donald Trump regarding a 25% tariff on most Canadian imports.

Escalating Trade Tensions

Canada responded to President Trump’s tariff declaration with a reciprocal 25% tariff on goods originating from the United States. The initial announcement from Premier Ford indicated a swift cancellation of the agreement with Starlink.

Tariff Delay and Contract Reconsideration

However, later on Monday, Premier Ford indicated a pause in those plans. This shift occurred after President Trump agreed to a 30-day delay in implementing the tariffs on Canadian imports. This postponement was prompted by concessions offered by Canadian Prime Minister Justin Trudeau.

Canadian Concessions at the Border

Among the concessions made by Canada was a commitment to deploy 10,000 “frontline personnel” along the 5,500-mile Canada-U.S. border. This increased security presence is intended to address concerns raised by the U.S. administration.

Elon Musk's Role in the Trump Administration

Elon Musk has developed a close working relationship with President Trump. He currently leads the Department of Government Efficiency (DOGE), a team within the Trump administration focused on reducing government expenditure and streamlining regulations.

Starlink's Expansion Efforts

Concurrently, Starlink is actively pursuing contracts with various governmental entities, both at the local and national levels, to provide satellite-based internet access. The Ontario government’s contract, signed in November 2024, aimed to deliver high-speed internet connectivity to underserved rural areas within the province.

Ford's Strong Stance Against U.S. Tariffs

Prior to the tariff delay, Premier Ford stated that other U.S. companies would be excluded from future provincial contracts in Ontario until the U.S. government rescinded the tariffs. He characterized Musk as being aligned with a “Trump team” that seeks to negatively impact families and businesses.

Direct Criticism of Elon Musk

Ford asserted that Musk’s actions would “take food off the table of people, hard-working people,” and emphasized his unwillingness to accept such outcomes. He further stated that U.S. businesses stand to lose “tens of billions of dollars” in potential revenue due to President Trump’s policies.

Starlink's Response

Starlink has not yet issued a public response to requests for comment regarding this situation.

Correction

Please note: An earlier version of this report incorrectly stated the contract value as $100 million. The correct amount is $100 million CAD. This article has been updated to reflect the latest developments, including the temporary delay of the announced tariffs.