Ontario Halts Starlink Contract Cancellation as U.S. Delays Tariffs on Canada

Ontario has halted planned retaliatory measures against the U.S. after President Donald Trump postponed tariffs on Canadian imports by 30 days. Premier Doug Ford had initially threatened to ban U.S. companies from provincial contracts and remove American products from liquor store shelves, but announced a pause following Trump's decision.

One major suspension includes the cancellation of a C$100 million ($68.12 million) contract with Elon Musk's Starlink, which was set to deliver high-speed internet to 15,000 remote homes and businesses in Ontario. Musk, a key Trump ally, dismissed the threat with an "Oh well" post on X.

Trump had planned to impose a 25% tariff on nearly all Canadian imports except oil, which would face a 10% surcharge. Experts warned these measures could push Canada into a recession. Prime Minister Justin Trudeau responded with plans for a 25% tariff on C$155 billion worth of U.S. goods.

Ford acknowledged the economic risks, stating, “So long as our trading relationship remains uncertain, potential projects will be frozen, and existing ones will be at risk.” Ontario, Canada’s most populous province and economic hub, relies heavily on U.S. trade, making the situation particularly impactful.

Trump’s delay offers both nations a chance for negotiation, but tensions remain high. If tariffs proceed, they could significantly disrupt the Canada-U.S. trade partnership, one of the world's largest.