Canada Bans US Firms From Government Contracts, Dumps Elon Musk’s Starlink Deal
Published 7 hours ago on February 3, 2025By PorscheClassy News
SHARETWEET
Canada has banned US firms from government contracts and ended its deal with Elon Musk’s Starlink.
Ontario, Canada’s most populous province and economic hub, announced on Monday a ban on US companies bidding for tens of billions of dollars in government contracts. The province also terminated its deal with Starlink in response to US tariffs.
“Ontario won’t do business with people hellbent on destroying our economy,” said Ontario Premier Doug Ford on X.
“US-based businesses will now lose out on tens of billions of dollars in new revenues. They only have President Trump to blame.”
Ford also mentioned he was “ripping up” a Can$100 million (US$68 million) contract with Starlink, signed in November, which aimed to provide internet services to 15,000 homes and businesses in remote northern Ontario. Starlink was scheduled to begin providing service in June.
The company’s owner, Musk, who is the world’s richest man and a close advisor to US President Donald Trump, had been contracted to beam internet services to northern Ontario. However, the move comes after Trump vowed to impose 25 percent tariffs on Canadian imports starting on Tuesday.
Additionally, Ontario’s liquor stores began removing US beer, wine, and spirits from shelves on Monday.
Several other Canadian provinces, including Quebec, Nova Scotia, and British Columbia, followed suit.
The Liquor Control Board of Ontario, one of the world’s largest single buyers of alcohol, supplies its own stores as well as local restaurants, bars, and other retailers in the province. It sells almost Can$1 billion worth of US alcohol, or about 3,600 products, each year.
Earlier on Monday, Trump spoke with Canadian Prime Minister Justin Trudeau about the tariffs and mentioned on his Truth Social platform that they would speak again later in the day