A pledge by the Premier of Ontario, Doug Ford, to cancel an estimated $100 million contract with Elon Musk’s Starlink has been placed on hold after the United States (US) postponed plans to introduce new tariffs on Canadian goods.
Following calls between US President Donald Trump and the Canadian Prime Minister Justin Trudeau on February 3, 2025, plans to hit Canada with 25% tariffs were paused for 30 days to allow more time for negotiations.
During his campaign for a second term as president, Donald Trump told voters he would hit Canada, Mexico and China with tariffs, complaining that the US was being treated unfairly.
President Trump also expressed deep concerns over the flow of the synthetic opioid Fentanyl from all three countries into the US.
In January 2025, President Trump confirmed that new tariffs would be introduced against Canada, leading to Prime Minister Trudeau announcing a raft of retaliatory steps.
Starting today and until U.S. tariffs are removed, Ontario is banning American companies from provincial contracts.
— Doug Ford (@fordnation) February 3, 2025
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…
On February 3, 2025, in response to the tariffs Premier Ford, who has been one of the most vocal opponents of the aggressive tariffs, said that Ontario would be “ripping up the province’s contract with Starlink”.
“Ontario won’t do business with people hellbent on destroying our economy,” said Ford.
Musk, who owns the international telecommunications provider Starlink through his space company SpaceX, responded to the threat by posting “oh well” on social media.
However, Ford later said that “cooler heads” had prevailed and the introduction of tariffs against Canada had been averted for now.
“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,” wrote Ford.
President Trump also paused plans to hit Mexico with new tariffs but a 10% tax against China did come into effect on February 4, 2025.
“Canada is making new commitments to appoint a Fentanyl Czar, we will list cartels as terrorists, ensure 24/7 eyes on the border, launch a Canada- U.S. Joint Strike Force to combat organized crime, fentanyl and money laundering. I have also signed a new intelligence directive on organized crime and fentanyl, and we will be backing it with $200 million. Proposed tariffs will be paused for at least 30 days while we work together,” said Prime Minister Trudeau.