Canadian Premier cancels $100,000,000 contract with Elon Musk in retaliation for Trump tariffs
Doug Ford, Ontario's Premier, has torn up the province's agreement with Musk's internet satellite company Starlink as a countermeasure in the North American trade dispute, CBC reports. Ford also declared a prohibition on all American businesses participating in any future provincial purchasing after criticizing Trump for selecting "chaos" over mutual economic growth.
The 60-year-old politician previously warned he might cut electricity to 1.5 million American users when US President Donald Trump announced new "disastrous" tariffs on Canada. Though the plans paused for 30 days, Trump approved the implementation of 25 percent tariffs on Canadian exports and 10 percent tariffs on Canadian energy this week.
After returning to the White House in January, the 47th President stated that China, Mexico and Canada should face consequences for their "unfulfilled promises to stop the flow of harmful drugs into the US." Trump further strained relations by suggesting that Canada's only way to avoid the tariff would be to become a "valued" 51st state.
Starlink operates as a division of SpaceX, created by tech tycoon Musk, who also leads the US president's cost-reduction Department of Government Efficiency (DOGE) team. The company signed an agreement with the province just last November to deliver fast internet to 15,000 rural homes and businesses by summer 2024.
When questioned about the contract at a Tuesday press conference (March 4), Ford stated: "It's done, it's gone."
"We won't award contracts to people who enable and encourage economic attacks on our province and our country," he stated.
This action follows Ontario's main liquor distributor and seller confirming it would stop buying or selling American alcohol.
The Premier repeated his threat to cut US power, cautioning lawmakers in New York, Michigan and Minnesota that if the trade conflict "continues," Ontario will add a 25 percent extra charge on electricity flowing to these border states, and might completely stop the supply. Similarly, he indicated the province could apply surcharges to or halt mineral exports to the US.
Ford said: "This is not the outcome anyone wanted.
"We could have directed our energy into making Canada and the US the two wealthiest, most prosperous, safest, most protected nations globally. Sadly, one individual — President Trump — has picked disorder instead." The province worries the import taxes might cause a crisis in numerous key Ontario sectors, such as car manufacturing and steel production, while raising store prices and fueling inflation.
Ford stated: "We also must be prepared to persist in a lengthy battle."
"We must be ready to increase pressure using every resource available to us."
According to the Toronto Sun, Ford, who secured a third majority last week, also earlier remarked: "If they want to try to destroy Ontario, I will do anything, including stopping their energy supply — with a grin on my face."
"They need to experience the consequences. They want to attack us strongly? We've got to respond twice as forcefully."
