Ontario Premier Doug Ford has made a dramatic move by canceling the province’s $100 million contract with Elon Musk’s Starlink which is similar to Canada’s Telesat LEO which is being built for enterprise, government, telecom, maritime and aerospace markets. Initially Starlink was signed to bring high-speed satellite internet to 15,000 rural, remote, and northern homes and businesses by June 2025, the deal is now off the table. Ford announced that Ontario will ban American companies from provincial contracts until U.S. tariffs are lifted, signaling a powerful stand against what he calls unfair economic practices from the United States.
The cancellation comes in direct response to sweeping tariffs imposed by the U.S. on nearly all Canadian goods. Ford has stated, “Ontario won’t do business with people hellbent on destroying our economy,” underlining his commitment to protecting local jobs and industries. By scrapping the Starlink deal, Ford aims to show that Ontario will prioritize Canadian businesses and workers over American companies that, in his view, contribute to economic challenges in the province.
The Growing Tensions of a Canada–USA Trade War
This move is more than just a provincial decision—it reflects the escalating trade war between Canada and the United States. The tariffs imposed by U.S. President Donald Trump have rattled the Canadian economy, prompting not only Ontario but also other provinces to reconsider their trade relationships with American companies. In response, several provinces are moving to remove American products from government contracts and public stores, in an effort to protect local industries and reinforce a “buy Canadian” strategy.
In a similar vein, Ontario’s own Liquor Control Board of Ontario (LCBO) has been directed to remove American products from its catalogue, ensuring that local restaurants and retailers cannot order or restock U.S. products. Ford reiterated his support for a strong federal response, stating that these actions are necessary to maximize Ontario’s leverage in this trade conflict.
What a Trade War Could Mean for Both Nations
The trade war between Canada and the USA is not just about dollars and cents—it has far-reaching implications. On one hand, the Canadian government’s retaliatory measures, such as imposing tariffs on $155 billion worth of American goods, are designed to pressure the U.S. to reconsider its tariffs. On the other hand, these actions could lead to increased prices for consumers in both countries, disruptions in supply chains, and uncertainty for businesses that rely on cross-border trade.
Experts warn that while a tough stance might help protect local industries in the short term, prolonged trade tensions could hurt the economy by reducing international trade and investment. The situation highlights a delicate balance: both countries depend heavily on each other’s markets, and a full-scale trade war could have serious economic repercussions on jobs, prices, and overall economic stability.
Looking Ahead: A Future of Uncertainty and Opportunity
Other provinces have quickly joined Ontario’s lead. In Quebec, Premier François Legault has instructed the province’s liquor board, the Société des alcools du Québec (SAQ), to remove all American products from its shelves starting Tuesday. Quebec’s government is also working to fast-track infrastructure projects and create more jobs to help offset the economic challenges posed by the tariffs.
British Columbia is also making significant moves. Premier David Eby has ordered the BC Liquor Distribution Branch to immediately stop purchasing American liquor—especially from states considered to be “red states”—and remove top-selling red-state brands from public stores. Eby’s administration is also accelerating the approval process for local projects valued at billions of dollars, aiming to reduce reliance on American goods and boost local employment.
Manitoba’s Premier Wab Kinew announced that Manitoba Liquor and Lotteries will stop selling American products starting Tuesday, urging residents to shop local and keep money within the province. Saskatchewan’s Premier Scott Moe has emphasized the need for targeted, specific retaliatory measures, while New Brunswick’s Premier Susan Holt is preparing a comprehensive response plan to support local workers and businesses.
Nova Scotia and Prince Edward Island have also taken steps to limit American imports. Nova Scotia’s government is set to cancel existing contracts with American businesses and double tolls at key transit points as part of its broader strategy to secure local interests, while Prince Edward Island has convened a special cabinet committee to develop a coordinated response aimed at protecting its farmers, fishers, manufacturers, and exporters.
Collectively, these measures by Ontario and other provinces represent a united front against what is being called an “economic aggression” by the U.S. As Canada and the United States continue to navigate this high-stakes trade war, the emphasis is on protecting Canadian jobs, bolstering local industries, and promoting a “buy Canadian” attitude.