Key Takeaways
In the hours between Donald Trump announcing then temporarily revoking tariffs on Canadian goods, Ontario lawmakers joined the federal government in pursuing retaliatory measures.
These involved suspending all provincial contracts with American companies, including the SpaceX subsidiary Starlink.
But although those measures have now been put on hold while the two nations’ leaders head to the negotiating table, Ontario Premier Doug Ford continues to wield the province’s public spending as a bargaining chip.”
Among dozens of American companies threatened by Ontario’s response to Trump’s tariffs, Starlink risks losing out on a C$100 million contract to provide internet to remote communities.
Following President Trump’s announcement of a 25% tariff on virtually all Canadian imports, Ford declared that Ontario would be “ripping up” its contract with Starlink.
Explaining the move with a dig at SpaceX CEO Elon Musk, he said the Toronto administration, which governs one of Canada’s largest and most prosperous provinces, “won’t do business with people hellbent on destroying our economy.”
Although Canadian Prime Minister Justin Trudeau managed to negotiate a 30-day pause on Trump’s proposed tariffs, Ford cautioned against complacency.
“Whether it’s tomorrow, in a month or a year from now when we’re renegotiating the United States-Mexico-Canada Agreement,” he stated, “President Trump will continue to use the threat of tariffs to get what he wants.”
While tensions with the U.S. have de-escalated for now, Ford emphasized that Canada’s relationship with its largest trade partner remains up in the air.
Echoing the sentiment of many federal lawmakers in Ottawa, he said: “Canada and the U.S. need to remain united and focused on the real trade war we’re fighting, with China.”
“If we want to win, we need to fight together—not each other,” he added.