
Ontario Premier Doug Ford has canceled a $100-million contract with Elon Musk’s Starlink in response to new U.S. tariffs on Canadian goods. The move is part of a broader Canadian response to a growing trade dispute with the United States.
Starting Tuesday, the U.S. planned to impose a 25% tariff on Canadian products. In response, Ford announced that Ontario will not do business with U.S. companies until the tariffs are removed.
Ontario will not do business with people hell-bent on destroying our economy,” Ford said in a statement from his Progressive Conservative Party’s re-election campaign.
The deal, signed in November 2024, aimed to provide high-speed internet to 15,000 rural homes and businesses in Ontario. Now that it’s canceled, those communities will have to wait for an alternative solution.
A 30-Day Pause on Tariffs—A Chance to NegotiateIn a new development, a 30-day pause on the tariffs has been announced, giving both countries more time to negotiate. A U.S. official said:
A 30-day pause in tariffs offers more time for negotiations and more time for cooler heads to prevail. Instead of fighting each other, we need to work together to make Canada and the U.S. the richest, most successful, safest, most secure two countries on the planet.”
Canada is also pushing back. Prime Minister Justin Trudeau announced a 25% tax on U.S. goods, worth $155 billion, including food and clothing. He urged Canadians to support local businesses instead.
What About U.S. Foreign Aid?
Meanwhile, there is debate in the U.S. over USAID, the agency that funds food programs in Africa, disaster relief, and education projects. Some officials want to cut its budget or merge it with the State Department. Critics argue this could reduce U.S. influence worldwide and hurt global humanitarian efforts.
With a 30-day negotiation window, there’s a chance for a trade deal that avoids economic harm to both nations. If an agreement isn’t reached, businesses and everyday people in both Canada and the U.S. could feel the impact.