The right Naija news at your fingertips

Canada’s Ontario bans US firms from government contracts, dumps Elon Musk’s Starlink deal over Trump tariffs

Ontario, Canada’s largest province, has made a bold move in retaliation to the U.S. tariffs announced on Monday, February 3. Premier Doug Ford declared that Ontario will no longer allow U.S. companies to bid on government contracts, which are worth tens of billions of dollars. Ford didn’t hold back, blaming U.S. President Donald Trump for this lost opportunity for U.S. businesses.

In addition to this action, Ford canceled a significant deal with Elon Musk’s company, Starlink. The deal, worth CAD 100 million (USD 68 million), was supposed to bring internet services to 15,000 remote homes and businesses in northern Ontario by June. The project, signed in November, aimed to improve connectivity in areas where it’s difficult to provide internet access. However, this deal is now off the table due to the tariffs imposed by the U.S.

Ford explained that U.S. companies will lose out on billions of dollars in new revenue, and he said Trump’s tariff decision was to blame for these losses.

As part of the response, Ontario also began pulling U.S. alcohol products—such as beer, wine, and spirits—off the shelves of its government-run liquor stores. Other provinces, including Quebec, Nova Scotia, and British Columbia, followed suit. The Liquor Control Board of Ontario, one of the world’s largest alcohol buyers, sells nearly CAD 1 billion worth of U.S. alcohol each year. This move will have a significant impact on U.S. producers.

Meanwhile, President Trump indicated ongoing talks with Canadian Prime Minister Justin Trudeau and stated that they would continue their discussions later.

Ontario’s actions are a direct response to Trump’s decision to impose a 25% tariff on Canadian imports, set to begin on Tuesday. It’s clear that Ontario is sending a strong message about how seriously it takes these tariffs and the economic impact they may have.

Related News