EDITOR’S NOTE: This article originally appeared on The Trillium, a Village Media website devoted to covering provincial politics at Queen’s Park.
In the wake of U.S. President Donald Trump's decision to slap tariffs on Canadian goods starting Tuesday, the province is "ripping up" a $100 million deal with Elon Musk’s Starlink to provide satellite internet to thousands of Ontario homes and businesses.
Progressive Conservative Leader Doug Ford announced Monday morning that Ontario would ban U.S. companies from provincial contracts until the tariffs — 25 per cent on all Canadian exports except for energy, which will face a 10-per cent tariff — are removed.
"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 now lose out on tens of billions of dollars in new revenues. They only have President Trump to blame," said Ford, adding that the government would go "one step further."
"We’ll be ripping up the province’s contract with Starlink. Ontario won’t do business with people hell-bent on destroying our economy," he said. "Canada didn't start this fight with the U.S., but you better believe we're ready to win it."
The deal would have seen Ontario pay Musk's Starlink $100 million to provide satellite internet hookups to 15,000 remote homes and businesses.
The move follows calls from the Liberals and NDP to scrap the partnership with Musk, a Trump ally, and Ford saying last week in response to a question from The Trillium that he would "keep an eye" on the deal.
Liberal Leader Bonnie Crombie said on Jan. 22, before Ford officially triggered an early election, that if he was "serious about standing up to Trump, he would cancel his sweetheart deal with Elon Musk."
"Why did Doug cosy up to Elon in the first place? This is a destructive man child who proudly styles his leadership after a dictator, and is championing the 25 per cent tariff on Canada," said Crombie.
Asked about this at a press conference on Jan. 24, Ford shot back, saying it's "ironic" that the Liberals are using Musk's X.com social media platform to get their message out.
He also defended the deal itself.
"We went out for a transparent bid. They came out (on) top. They're the largest in the entire world, as everyone knows. Other companies couldn't even handle the infrastructure, but I can assure you, we'll keep an eye on that. But we need to deliver internet as we promised," he said.
The deal raised eyebrows when it was announced shortly after the U.S. election in November. It breaks down to $6,667 per connection and recipients will still have to pay monthly fees — while Starlink kits retail for about $500. A government spokesperson told Village Media at the time that up to $92 million of the cost will “cover capacity reservation from Starlink for Ontario, hardware and installation costs, and (an) Indigenous Engagement and Participation Plan.”
NDP Leader Marit Stiles echoed the Liberals' call on Sunday, the day after Trump signed an executive order to impose the tariffs on Canada.
“Access to broadband in Northern communities is a lifeline for people. It’s how northerners stay connected with their loved ones, run their businesses, and build a thriving economy," said Stiles in a statement. "At a time with Donald Trump and his billionaire friends are threatening Canadian livelihoods, Doug Ford handed over a multi-million dollar deal to Elon Musk’s Starlink. It’s time to find a Canadian-made solution that meets the needs of northern communities and phase out Starlink. Northern communities deserve better than Ford’s bad deals.”
The plan to rip up the Starlink deal follows Ford announcing on Sunday that he'd instructed the LCBO to remove all American products from their shelves by the time the U.S. tariffs hit on Tuesday.
—With files from Jessica Smith Cross
