Ontario Premier Doug Ford announced on Monday that the province's government would be canceling its $68 million contract with Elon Musk's Starlink satellite internet service, citing trade tensions between Canada and the US. The contract, signed in November 2024, aimed to provide fast internet to remote parts of the province.

The move came in response to President Donald Trump's announcement of a 25% tariff on nearly all Canadian imported goods, prompting Canada to impose a 25% tariff on US goods in response. Ford initially stated that other US companies would also be banned from future provincial contracts in Ontario until the US government removes the tariffs.

Ford's decision to cancel the contract was reportedly influenced by Musk's close relationship with President Trump. Musk currently oversees the Department of Government Efficiency (DOGE), a team within the Trump administration tasked with conducting massive cost-cutting and deregulation. Ford criticized Musk, stating that he was "part of the Trump team that wants to destroy families, incomes, destroy businesses" and that he "wants to take food off the table of people, hard-working people, and I'm not going to tolerate it."

However, in a surprising turn of events, Ford later put a pin in the plan to cancel the contract after President Trump chose to delay imposing tariffs on all Canadian imports for 30 days. The stay came after Prime Minister Justin Trudeau of Canada announced several concessions, including plans to station 10,000 "frontline personnel" at the 5,500-mile-long Canada-US border.

The cancellation of the contract would have significant implications for Starlink, which has been seeking to strike deals with local and national governments to provide satellite internet. The Ontario government's contract was a major win for the company, and its cancellation would have dealt a significant blow to its expansion plans.

The incident highlights the complex and often contentious nature of international trade agreements. As governments increasingly turn to technology companies to provide critical infrastructure, the lines between business and politics are becoming increasingly blurred. The fate of the Starlink contract serves as a reminder of the far-reaching consequences of trade tensions and the importance of diplomacy in resolving disputes.

Starlink did not immediately respond to requests for comment on the cancellation of the contract. The company's silence on the matter has sparked speculation about the future of its expansion plans and its relationship with governments around the world.

In the end, the cancellation of the Starlink contract serves as a cautionary tale about the risks of mixing business and politics. As trade tensions continue to simmer between Canada and the US, it remains to be seen how this incident will impact the future of technology contracts and international relations.