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SpaceX's Starlink internet service lost a C$100 million contract from the Canadian provide of Ontario, according to governor Doug Ford. Ontario signed a deal with Starlink in November last year to provide internet service to 15,000 residents in rural and northern Ontario. Ontario Governor Ford ascribed the decision to Starlink's ties to Elon Musk and his ties to US President Donald Trump. Ford linked Musk's connection to 'attempts to destroy Canada's economy' after the President shocked his northern neighbor by enacting 25% tariffs on Canadian exports to the US to gain leverage in his attempts to stem the flow of fentanyl into the US and rebalance America's trade ties with Canada.
Starlink Contract Part Of Broader Ontario Ban On Contracts With US Companies
Ford's announcement follows Trump's decision to announce 25% tariffs on Canada starting Tuesday. The US President declared an economic emergency on Saturday and announced his decision that he had promised during the election campaign.
These tariffs, if they go into effect, will affect a variety of goods that Canada sells to the US including oil, gas and auto parts. Shares of major American car companies, including Elon Musk's Tesla, opened lower today as investors digested the impact of the latest announcements on the car supply chain.
Canada and Mexico, the hardest hit by the latest tariff announcements, were also quick to announce retaliatory action. This action includes a latest X post from Ontario Governor Doug Ford. Ford announced on social media earlier today that his province "is banning American companies from provincial contracts."
Ford's X announcement also specifically mentioned Musk's Starlink satellite internet service. SpaceX's Starlink low-Earth orbit. (LEO) constellation is the world's largest and it is responsible for beaming down internet to thousands of users worldwide. SpaceX aims to use the money it generates from Starlink to develop Starship and eventually conduct crewed flights to Mars.
"We’ll be ripping up the province’s contract with Starlink," outlined the Ontario governor. He added that "Ontario won’t do business with people hellbent on destroying our economy," in an apparent reference to Musk and his ties to President Trump.
Ontario announced a C$100 million contract with Starlink in November last year to provide internet coverage to residents in the province's rural and northern areas. The service was slated to become operational in June and provide coverage to approximately 15,000 residents, according to Ontario's Infrastructure Minister Kinga Surma. The Starlink contract was part of the province's C$4 billion plan to provide residents with high-speed internet coverage.
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