The Canadian province of Ontario will hold off on a threat it made earlier on Monday to cancel a roughly $100 million contract with Elon Musk’s Starlink after the Trump administration agreed to postpone new tariffs on Canada for a month.
Earlier in the day, Ontario Premier Doug Ford said the province would be “ripping up” the deal involving Trump’s “first buddy” and the head of the DOGE government efficiency review effort.
“Ontario won’t do business with people hellbent on destroying our economy,” Ford wrote on X. “Canada didn't start this fight with the U.S., but you better believe we're ready to win it.”
Ford argued that the Trump administration’s previous stance imposing tariffs on Canada meant U.S. companies shouldn’t have access to the billions in procurement and building funds the province spends each year.
“They only have President Trump to blame,” he warned.
Musk, for his part, didn’t seem concerned about losing the deal to begin with, writing: “Oh well,” on X in response to a post about the planned dissolution of the Starlink deal, which was first inked last year.
The Independent has contacted Starlink for comment.
Later Monday, outgoing Canadian Prime Minister Justin Trudeau said he had a “good call” with Trump, and that the planned 25 percent tariffs would be postponed. In a bid to stave off the penalty, Trudeau said Canada would commit to implementing a $1.3 billion border security plan and mobilizing 10,000 frontline personnel along the international boundary to deter illegal drugs and immigration.
Ford hailed the postponement as “good news.” His office told the Canadian Broadcasting Corporation that it was pausing planned retaliatory measures, including those regarding the Starlink deal. But the Canadian leader left the door open to future measures punishing the U.S. if tariffs take effect.
“So long as our trading relationship with our largest trading partner is up in the air, we will continue to see many potential projects frozen and projects that were already underway put at risk,” he warned on X.
“Canada and the U.S. need to remain united and focused on the real trade war we’re fighting, with China,” he continued. “If we want to win, we need to fight together - not each other.”
Mexico, which was also facing an impending 25 percent tariff, reached a similar agreement with the U.S. on Monday to pause the levies for a month, after Mexico promised to move 10,000 soldiers to the border.
