Elon's Trump Alignment Costs Him Canada Starlink Contract: 'Oh Well'

Ontario Premier Doug Ford is scrapping a nearly $100 million contract with Elon Musk‘s Starlink, citing U.S. tariffs that Ford says threaten Canadian businesses.

The deal, signed in November, was meant to deliver high-speed internet to 15,000 remote and rural locations across the province, but Ford now says Ontario will no longer do business with American firms until the tariffs are lifted, CBC reports Monday.

What Happened: Ford announced Monday that Ontario will terminate its agreement with Starlink, a subsidiary of Musk's SpaceX, after President Donald Trump announced sweeping tariffs on Canadian goods over the weekend. Speaking in Etobicoke, Ford accused Musk of being part of a team that aims to "destroy families, incomes, destroy businesses."

Ontario’s procurement budget totals $30 billion annually, and Ford stated that American companies will be blocked from receiving government contracts until the tariffs are repealed. "U.S.-based businesses will now lose out on tens of billions of dollars in new revenues. They only have President Trump to blame," Ford said.

According to CBC, Ford has faced previous criticism over the Starlink contract, with Ontario Liberal Leader Bonnie Crombie calling for its cancellation last week. Crombie argued the province should have prioritized Canadian providers from the start. Opposition leaders, including NDP Leader Marit Stiles and Green Party Leader Mike Schreiner, also welcomed the decision, though they questioned why the contract was awarded to Musk's company in the first place.

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Why It Matters: Ontario's decision to retaliate against the U.S. tariffs with procurement restrictions signals a deepening trade rift between Canada and its largest trading partner. The move could have major financial implications for American businesses that rely on provincial contracts, CBC reports.

Musk responded with "Oh well" on X, the platform he owns.

While Ford defended the original contract by stating that only two providers, Starlink and Xplore Inc., met Ontario's technical requirements, he now says a Canadian alternative must be pursued. He insisted the province has not paid Starlink anything yet and suggested legal action may be unnecessary to exit the deal.

The controversy comes as Starlink expands its footprint in Canada, now serving approximately 400,000 subscribers. Meanwhile, the satellite provider is also making headlines in the U.S. after teaming up with Apple Inc. and T-Mobile US Inc. to introduce Starlink-powered texting on iPhones, initially in a limited beta test.

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