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Ontario Cancels Starlink Contract Amid Tariff Dispute

U.S. President Donald Trump, left, and Canadian Prime Minister Justin Trudeau talk prior to a NATO round table meeting at The Grove hotel and resort in Watford, Hertfordshire, England, Dec. 4,

The leader of Ontario, Canada's most populous province, announced on Monday the decision to terminate a contract with Elon Musk's Starlink internet service. This move comes in response to the sweeping tariffs imposed by U.S. President Donald Trump on Canadian goods.

A senior Canadian government official expressed concerns about the impending tariffs, citing a perceived disparity in treatment between Canada and Mexico. While Mexico managed to delay the tariffs through negotiations, Canada is uncertain about avoiding them.

President Trump and Mexican President Claudia Sheinbaum agreed to postpone their planned tariffs for a month to facilitate further discussions. Trump confirmed his communication with Canadian Prime Minister Justin Trudeau and hinted at ongoing talks.

Ontario Premier Doug Ford, in addition to canceling the Starlink contract, announced a ban on American companies from provincial contracts. Ford emphasized the importance of supporting local businesses and products to bolster the provincial economy.

Ford criticized Trump's actions, attributing the contract termination to the President's policies. He highlighted the potential economic impact on U.S.-based businesses and reiterated his commitment to sourcing materials domestically.

Ontario, along with other provinces, also plans to remove American liquor brands from government stores as part of the retaliatory measures against U.S. tariffs. Ford emphasized the readiness of Canada to defend its interests in the trade dispute.

Encouraging businesses to prioritize Canadian products, Ford underscored the significance of supporting the local economy. He condemned Trump's approach, accusing him of harming American citizens with his tariff policies.

In response to Ford's actions, Trump criticized Canada's trade surplus with the U.S. and suggested the country should become the 51st state. Ford dismissed Trump's proposal, asserting Canada's sovereignty and readiness to navigate the trade challenges.

As tensions escalate between Canada and the U.S., Ford's stance reflects a commitment to protecting Ontario's interests and promoting domestic industries in the face of trade uncertainties.

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