Digital Product
Ontario Considers Terminating Starlink Contract Amid Tariff Disputes
2025-03-04

The escalating trade tensions between Canada and the United States have prompted Ontario Premier Doug Ford to reconsider his province's commitment to a significant technology contract. In light of newly imposed tariffs, Ford has announced plans to potentially cancel a $100 million agreement with SpaceX's Starlink for internet services in remote areas. This decision marks a shift from his previous stance, which supported the partnership signed just months ago.

Premier Ford is preparing for a prolonged conflict, emphasizing that Ontario must be ready to employ all available measures to defend its interests. The potential termination of electricity exports to the US, along with additional surcharges on various exports, underscores the seriousness of the situation. Canada supplies power to several US states, and any disruption could affect over 1.5 million residents. Moreover, Ford has expressed willingness to halt these exports if necessary, reflecting a firm stance against the tariffs.

Canada’s response to the tariffs extends beyond Ontario. The national government, led by Prime Minister Justin Trudeau, has introduced retaliatory measures, including matching tariffs on US goods. The LCBO, Ontario’s main liquor wholesaler, has ceased purchasing US-made alcohol. Trudeau criticized the US approach, questioning its logic given the longstanding alliance between the two nations. Despite the challenges, both leaders are clear: Canada remains resolute in protecting its sovereignty and economy. Meanwhile, Starlink finds support elsewhere, as the FAA announces plans to integrate its technology into airport infrastructure, ensuring the company remains financially stable amid geopolitical shifts.

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