Ontario Premier Doug Ford has announced that the province's government will be cancelling its $68 million contract with Elon Musk's Starlink satellite internet service, citing the company's close ties to the Trump administration as the reason. The move comes amid escalating trade tensions between Canada and the US, sparked by President Donald Trump's announcement of a 25% tariff on nearly all Canadian imported goods.

In a statement posted on social media, Ford expressed his dissatisfaction with Musk's involvement in the Trump administration, stating that "Ontario won't do business with people hellbent on destroying our economy." Musk has been serving as the head of the Department of Government Efficiency (DOGE), a team tasked with conducting massive cost-cutting and deregulation efforts within the Trump administration.

The cancelled contract, signed in November 2024, was intended to provide fast internet to remote parts of the province. However, Ford has made it clear that the province will no longer do business with US companies until the tariffs are removed. "U.S.-based businesses will now lose out on tens of billions of dollars in new revenues. They only have President Trump to blame," Ford stated.

The move is seen as a significant blow to Starlink's efforts to strike deals with local and national governments to provide satellite internet. The company has been actively pursuing contracts with governments around the world, and the Ontario contract was seen as a major win. However, with the cancellation of the contract, Starlink's plans for expansion may be put on hold.

The trade tensions between Canada and the US have been escalating rapidly, with Canada imposing a 25% tariff on US goods in response to the US tariffs. The move has sparked concerns about the impact on businesses and families on both sides of the border. Ford's decision to cancel the Starlink contract is seen as a symbolic gesture of defiance against the Trump administration's trade policies.

Starlink did not immediately respond to requests for comment on the cancellation of the contract. However, the company's silence has not gone unnoticed, with many speculating about the potential implications of the cancellation on the company's future plans.

The cancellation of the contract has sparked a wider debate about the role of technology companies in politics and trade policy. As the trade tensions between Canada and the US continue to escalate, it remains to be seen how this will impact the tech industry as a whole.

In the meantime, the people of Ontario will have to wait and see how the cancellation of the contract will affect their access to fast internet. While Ford's decision may be seen as a bold move, it remains to be seen whether it will have any tangible benefits for the people of Ontario.