As the trade war between Canada and the U.S. heats up, Ontario is "ripping up" a $100 million deal with Elon Musk's Starlink.
Progressive Conservative Leader Doug Ford took to social media Monday morning to announce the response to U.S. President Donald Trump's ordered 10 per cent tariffs on energy and 25 per cent tariffs on all other Canadian imports.
"We’ll be ripping up the province’s contract with Starlink. Ontario won’t do business with people hellbent on destroying our economy," Ford said in a statement. "Canada didn't start this fight with the U.S., but you better believe we're ready to win it."
The deal with satellite internet service provider Starlink was signed last November and was to provide high-speed internet access to roughly 15,000 homes and businesses in rural and remote communities in Ontario, particularly in the north, by this June. Starlink is run by Musk's Space X.
Liberal Leader Bonnie Crombie was quick to point out the deal with Starlink should have never been made as there are Canadian companies that could have done the work.
"I've been calling to rip up the sweetheart deal Doug Ford gave Elon Musk on Starlink since inauguration. Glad it's finally happening," Crombie said in a statement. "But let's be clear: this contract never should have been signed in the first place. Just another backtrack by Doug on his backward priorities.”
Canadian rural internet service provider Xplore Inc. participated in the bidding process for the contract that ultimately was awarded to Starlink.
Crombie went on to question whether there is a cost associated with cancelling the Starlink deal and whether Ford will nix other lucrative contracts with U.S. giants Amazon, Staples, and Walmart.
Ford did state on Monday the Ontario government will be banning American companies from provincial contracts going forward. He did not announce the cancellation of any existing contracts other than Starlink.
He said the ban will remain in place until the U.S. removes tariffs on Canadian goods.
This latest measure announced by Ford is in addition to an order for the LCBO to remove all American liquor from its stores. As well, the Crown corporation has been instructed not to sell U.S. booze to restaurants, grocers, and bars as of Tuesday. According to the LCBO, it sells $965 million worth of American alcohol annually.
Tariffs on Canadian goods going to the U.S. kick in on Tuesday. In retaliation, Canada has placed 25 per cent tariffs on $30 billion in U.S. goods effective the same day.