Ontario Premier Doug Ford has announced that the province's government will be canceling its $100 million contract with Elon Musk's Starlink satellite internet service, citing trade tensions with the US and Musk's close ties to President Donald Trump. The move comes in response to the US imposing a 25% tariff on nearly all Canadian imported goods, which Canada has reciprocated with a 25% tariff on US goods.

The contract, signed in November 2024, was intended to provide fast internet access to remote parts of the province. However, Ford has taken a strong stance against doing business with companies associated with the Trump administration, which he believes is "hellbent on destroying our economy."

Ford's decision is seen as a direct response to Musk's role in the Trump administration, where he oversees the Department of Government Efficiency (DOGE), a team tasked with reducing government spending and deregulation. Musk's Starlink has been seeking deals with local and national governments to provide satellite internet services, but Ford's move sets a clear precedent for Ontario's stance on US-based companies.

In a press conference on Monday, Ford emphasized that US companies will be banned from future provincial contracts in Ontario until the US government removes the tariffs. He accused Musk of being "part of the Trump team that wants to destroy families, incomes, destroy businesses" and stated that he will not tolerate it.

The implications of this move are far-reaching, with Ontario's decision likely to influence other Canadian provinces and potentially even national policy. The trade tensions between the US and Canada are expected to continue, and this development may escalate the situation further.

Starlink did not immediately respond to requests for comment, but the company's silence is unlikely to quell the controversy surrounding Musk's role in the Trump administration and the impact on his business ventures.

As the situation unfolds, it remains to be seen how this will affect the satellite internet industry as a whole, as well as the broader implications for international trade and diplomacy. One thing is clear, however: Ontario's decision to cancel its contract with Starlink marks a significant escalation in the trade tensions between the US and Canada.