Ontario Holds Starlink Deal Amid Trump's Tariff Threats, Ford Keeps Cancellation Option Open
February 14, 2025
In November 2024, Ontario's government signed a nearly C$100 million ($70.5 million) contract with Starlink to provide high-speed satellite internet access to rural areas, with services set to begin in June 2025.
Following President Trump's announcement of a 25% tariff on most Canadian imports on February 3, 2025, Premier Doug Ford initially threatened to cancel the Starlink deal.
However, after Trump announced a temporary 30-day pause on the tariffs, Ford decided to hold off on canceling the contract for now.
The tariffs are particularly impactful on Ontario's manufacturing sector, as Canada is the largest supplier of steel and aluminum to the U.S., accounting for nearly 25% of U.S. steel imports in 2024.
Despite the potential tariffs, Ontario is maintaining its contract with Starlink.
Ivana Yelich, a spokesperson for Ford, stated that the option to cancel the deal remains available if needed.
Trump's administration plans to impose additional tariffs on steel and aluminum starting in March 2025, with further reciprocal tariffs targeting countries with value-added taxes potentially following in April.
Elon Musk, the CEO of Starlink, has a history of political contributions, having donated over $200 million to Trump's campaign, and currently leads a government efficiency program.
Summary based on 2 sources