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• Ontario Premier Doug Ford announced the cancellation of a $100 million contract with Elon Musk’s SpaceX for the Starlink internet service.
• The decision is part of Ontario’s response to new U.S. tariffs imposed by President Donald Trump.
• Ford also declared a ban on all American companies from provincial contracts until the tariffs are lifted.

Quick Brief

2-Minute Digest

Essential Context

Ontario Premier Doug Ford has announced that the province will cancel its $100 million contract with Elon Musk’s SpaceX for the Starlink satellite internet service. This move is in response to the U.S. tariffs imposed by President Donald Trump, which include a 10% duty on energy and a 25% duty on other goods.

Core Players

• Doug Ford – Premier of Ontario and leader of the Ontario Progressive Conservative party
• Elon Musk – CEO of SpaceX and founder of Starlink
• Donald Trump – U.S. President who imposed the tariffs
• SpaceX – Elon Musk’s aerospace company behind the Starlink internet service

Key Numbers

• $100 million – Value of the cancelled Starlink contract
• 10% – Tariff on energy products imposed by the U.S.
• 25% – Tariff on other goods imposed by the U.S.
• $30 billion – Annual procurement spending by the Ontario government and its agencies
• 15,000 – Number of premises in rural and northern Ontario that were to receive Starlink service

Full Depth

Complete Coverage

The Catalyst

Premier Doug Ford’s decision to cancel the Starlink contract is a direct response to the U.S. tariffs announced by President Donald Trump. Ford stated, “We’ll be ripping up the province’s contract with Starlink. Ontario won’t do business with people hellbent on destroying our economy.”

This move is part of a broader strategy by Ontario to counter the economic impact of the U.S. tariffs.

Inside Forces

The cancellation of the Starlink contract reflects the internal dynamics within Ontario’s government and its stance against the U.S. tariffs. Ford’s government is currently campaigning for a $189 million snap election and is using this issue to address voter concerns about economic stability.

Ford also highlighted the economic impact of the tariffs, noting that up to 450,000 jobs across various sectors and regions could be at risk.

Power Dynamics

The decision to cancel the contract and ban American companies from provincial contracts gives Ontario significant leverage in its response to the U.S. tariffs. Ford emphasized that U.S.-based businesses will lose out on tens of billions of dollars in new revenues.

Ford’s statement, “They only have President Trump to blame,” underscores the political and economic tensions between Ontario and the U.S.

Outside Impact

The broader implications of this move include a potential escalation in trade tensions between Canada and the U.S. Other Canadian provinces are also considering similar actions, with some already removing American products from their markets.

The economic impact is expected to be significant, with Ford urging all 444 municipalities in Ontario to follow the province’s lead in banning American companies from contracts.

Future Forces

Looking ahead, the cancellation of the Starlink contract and the broader trade tensions could lead to a reevaluation of Ontario’s economic strategies. Ford has hinted at diversifying trade partnerships, mentioning tariff-free agreements with 51 other countries.

Investments in new technologies, such as small modular reactors, and expanding energy exports are also on the horizon as Ontario seeks to reduce its reliance on the U.S. market.

Data Points

• Feb. 3, 2025 – Date of the announcement to cancel the Starlink contract
• $189 million – Cost of the snap election called by Ford
• 450,000 – Potential jobs at risk due to U.S. tariffs
• 51 – Number of countries with tariff-free trade agreements with Canada
• $30 billion – Annual procurement spending by Ontario’s government and agencies