Ontario Cancels C$100 Million Starlink Contract Over U.S. Tariffs

The Government of Ontario has formally canceled a C$100 million satellite internet contract with Doug Ford's former partner, Elon Musk's Starlink. The decision serves as a retaliatory measure following tariffs imposed on Canadian goods by U.S. President Donald Trump. The contract, signed in November 2024, was designed to provide high-speed internet to 15,000 homes and businesses in rural and Northern Ontario, including remote First Nations.

Premier Ford characterized Musk as one of the "number one culprits" attacking Canada and stated that the province would not award contracts to those enabling economic attacks. This move is part of a broader strategy to decouple from U.S. interests, which includes banning U.S. companies from provincial procurement and removing U.S.-made alcohol from store shelves. Energy and Mines Minister Stephen Lecce confirmed the termination, stating the province is now seeking a Canadian alternative to ensure residents get connected.

Opposition leaders have criticized the government's handling of the deal. Liberal Leader Bonnie Crombie described the original agreement as a "sweetheart deal" and demanded transparency regarding the termination costs. While the government confirmed a cancellation fee was paid—claiming it was "significantly less" than the full contract value—officials have repeatedly refused to disclose the exact amount to taxpayers. NDP Leader Marit Stiles argued the cancellation should have occurred sooner and criticized the initial decision to hand tax dollars to Musk's company.