Doug Ford, Premier of Ontario, has declared that the province will ban US-based companies from securing provincial contracts and cancel a significant contract with Starlink, Elon Musk’s satellite internet company. These actions come in direct response to the US administration’s decision to impose steep tariffs on Canadian goods. Later, however, the leader of Canada’s most populous province added that he is halting all retaliatory measures (for now).
This development came a few days after Donald Trump, who recently regained the presidency, announced the imposition of 25% tariffs on nearly all Canadian imports, sparing only oil, which will face a 10% surcharge. Trump justified the tariffs by citing concerns over illegal narcotics trafficking and immigration, particularly from Canada and Mexico into the US. At that time, analysts have warned that if these tariffs remain in place for an extended period, the Canadian economy could face a significant downturn (perhaps even slip slipping into a recession).
In response to the US tariffs, Ontario Premier Ford announced that the province will immediately ban American companies from bidding on provincial contracts and cancel a $68.5 million *USD) agreement with Starlink. The Starlink contract was signed in November 2024, and aimed to deliver high-speed satellite internet access to 15,000 homes and businesses in remote areas of Ontario, particularly where internet connectivity remains a challenge. Starlink was expected to provide a solution and bridge the digital divide, ensuring that remote communities had access to reliable, high-speed internet essential for education, business, and healthcare services.
At the federal level, Canadian Prime Minister Justin Trudeau announced a retaliatory tariff of 25% on $106.5 billion worth of American goods. On the other hand, Mexico managed to secure a temporary reprieve from US tariffs. Mexican President Claudia Sheinbaum announced that the US had agreed to suspend tariffs on Mexican goods for one month. Musk, who has become closely aligned with President Trump’s administration and currently leads the US Department of Government Efficiency (DOGE), responded dismissively to the contract’s cancellation. In a brief post on social media, Musk wrote, “Oh well.”
“Starting today and until U.S. tariffs are removed, Ontario is banning American companies from provincial contracts,” Ford stated on social media, adding that Ontario’s $200 billion USD infrastructure development plan is now off-limits to US companies. “U.S.-based businesses will now lose out on tens of billions of dollars in new revenues. They only have President Trump to blame. We’re going one step further. We’ll be ripping up the province’s contract with Starlink. Ontario won’t do business with people hellbent on destroying our economy. Canada didn’t start this fight with the U.S., but you better believe we’re ready to win it.,” Ford added in his post on X. He also directed the Liquor Control Board of Ontario (LCBO) to remove all American products from store shelves, starting Tuesday.
Starting today and until U.S. tariffs are removed, Ontario is banning American companies from provincial contracts.
Every year, the Ontario government and its agencies spend $30 billion on procurement, alongside our $200 billion plan to build Ontario. U.S.-based businesses will…
— Doug Ford (@fordnation) February 3, 2025
Later, Ford announced that Ontario is pausing the retaliatory measures after Trump Trump announced a 30-day delay on the Canadian tariffs after discussions with Prime Minister Trudeau. “We have some good news today. We have temporarily averted tariffs that would have severely damaged our economy, giving time for more negotiation and time for cooler heads to prevail,” Ford posted on X, adding, “With the U.S. pausing tariffs, Ontario will also pause our retaliatory measures. If President Trump proceeds with tariffs, we won’t hesitate to remove American products off LCBO shelves or ban American companies from provincial procurement.”
We have some good news today. We have temporarily averted tariffs that would have severely damaged our economy, giving time for more negotiation and time for cooler heads to prevail. Thank you to the countless workers, union leaders, businesses and everyday proud Canadians who…
— Doug Ford (@fordnation) February 3, 2025
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