The move, framed as a direct response to what Ford called “economically destructive” U.S. trade policies, also bars American companies from bidding on provincial contracts, a decision likely to reverberate across cross-border business relations.

“We’ll be ripping up the province’s contract with Starlink,” Ford declared in a post on X, explicitly linking the decision to Trump’s tariffs. “Ontario won’t do business with people hellbent on destroying our economy.” The premier placed full blame on Trump, arguing the tariffs—including a 25% levy on Canadian and Mexican imports and a 10% duty on Chinese goods enacted February 1—undermine North American trade partnerships. “U.S.-based businesses will now lose out on tens of billions of dollars in new revenues,” Ford warned.

The retaliatory measures come amid heightened tensions between the two nations. Trump’s tariffs, part of a broader protectionist agenda, have drawn sharp criticism from Canadian leaders. Ford’s stance aligns with reports of provinces removing U.S.-made beverages from store shelves, signaling a coordinated pushback. “Canada didn’t start this fight with the U.S., but you better believe we’re ready to win it,” Ford stated.

Starlink’s parent company, SpaceX, is owned by Elon Musk, a vocal Trump ally who endorsed the president during the 2024 election and was recently appointed to lead a new federal agency aimed at slashing government inefficiency. Critics suggest Ontario’s targeting of Starlink may carry political undertones, given Musk’s ties to the Trump administration.

The dispute unfolded hours after Trump agreed to delay tariffs on Mexico and Canada by 30 days following talks with Mexican President Claudia Sheinbaum and Canadian Prime Minister Justin Trudeau. While the temporary pause offers a window for negotiation, Ford’s actions underscore the fragility of U.S.-Canada trade relations.

Analysts warn Ontario’s ban on U.S. contractors could disrupt supply chains and investment, particularly in sectors like infrastructure and technology. Meanwhile, the Financial Times reported that Canadian businesses are bracing for further fallout, with some provincial leaders urging Ottawa to adopt tougher retaliatory measures.

As the trade standoff intensifies, the cancellation of the Starlink deal highlights the growing politicization of economic partnerships. Ford’s combative rhetoric—and Musk’s proximity to Trump—suggests the clash may extend beyond tariffs, morphing into a broader ideological battleground over trade fairness and diplomatic loyalty. For now, the province’s message is clear: economic retaliation is no longer off the table.