Insider Brief
- Ontario has canceled a $68 million contract with SpaceX’s Starlink in response to new U.S. tariffs on Canadian goods, affecting plans to expand rural internet access.
- Premier Doug Ford framed the decision as economic retaliation, arguing that the 25% tariffs on Canadian exports would harm both economies and strain supply chains.
- SpaceX has not commented on the cancellation, but analysts warn that the move could escalate trade tensions and disrupt future tech collaborations between the two countries.
The Ontario government has abruptly canceled a $68 million contract with SpaceX’s Starlink, citing the U.S. administration’s decision to impose new tariffs on Canadian goods, Fox News is reporting. The contract, originally signed in November 2023, aimed to expand high-speed internet access to approximately 15,000 rural and remote households in the province, using Starlink’s satellite broadband technology.
Premier Doug Ford stated that the decision was made in retaliation to the proposed 25% tariff on Canadian exports, which he claims would negatively impact both countries’ economies.
“We’ll be ripping up our contract with Elon Musk’s Starlink. Ontario won’t do business with people hellbent on destroying our economy,” Ford told Fox News, arguing that the tariffs will hurt America and make Americans poorer.
“They will see inflation, they will see interest rates go up, they will see less money in their pockets,” he said during a speech in the Toronto area, Fox News reports. “Now, Canada has no choice but to hit back and hit back hard.”
Ford warned that the policy would not only fuel inflation, but also strain supply chains and force Canadian industries to reconsider their trade relationships with the U.S.
SpaceX has not issued an official response to the contract’s termination, but industry analysts suggest that the move highlights growing geopolitical tensions in North America’s trade and technology sectors.
While Ontario is seeking alternative broadband expansion solutions, rural communities that were counting on Starlink’s coverage may face further delays in gaining reliable internet access. The cancellation also raises questions about future tech collaborations between Canada and U.S.-based firms, particularly in space and telecommunications.
Experts predict that retaliatory actions from the Canadian government could escalate, affecting other cross-border technology agreements.
