 "Image Credit: Reuters")
In a bold move against Elon Musk’s companies, Ontario Premier Doug Ford has announced that his government will “rip up” a $100 million contract with Musk’s Starlink. The contract, which was set to bring high-speed internet to rural Ontario, will now be cancelled, with Ford laying the blame squarely on US President Donald Trump’s trade policies.
“President Trump is the only person to be blamed,” Ford stated, suggesting that Musk should have a word with his “buddy” to resolve the situation. Ford’s harsh stance comes amid rising tensions in the US-Canada trade relationship.
Rising trade tensions and strategic retaliation
The Starlink contract, which was signed in November, had been scheduled to go into effect over the summer, aiming to improve connectivity in Ontario’s northern regions. However, Ford made it clear that his government would not support businesses he views as contributing to the destruction of Ontario’s economy. “Ontario won’t do business with people hell-bent on destroying our economy,” Ford said during his press conference. He also clarified that the province had not paid for the contract yet, reinforcing his position on halting this business deal.
This action is part of a broader trade dispute between Canada and the US, sparked by Trump’s decision to impose a 25 per cent tariff on Canadian goods starting on February 1. In retaliation, Canada introduced a similar tariff on US products, which has led to a growing list of items affected by the escalating trade war. Prime Minister Justin Trudeau has worked to ease the tensions with Trump, resulting in a 30-day pause on some of the tariffs following a diplomatic agreement, but the situation remains fragile.
Targeting Musk and American allies
While the trade war unfolds, the Canadian government is also setting its sights on key figures associated with Trump’s administration, including Musk. In line with this, Liberal leadership candidate Chrystia Freeland has suggested a 100 per cent tariff on Teslas and US alcohol, targeting those who support Trump’s policies. Freeland emphasized the need for a “surgical and precise” approach to retaliating against Trump’s trade aggression, making it clear that Canada would respond to American actions with equal force.
Freeland also pointed out that the Trump administration thrives on uncertainty and that Canada could use this to its advantage. By clearly signalling that any attacks on Canada will result in significant retaliation, she believes Canada can gain leverage in these negotiations. As the Liberal Party prepares to choose a new leader in March, the growing trade dispute with the US and Musk’s involvement in these tensions are expected to remain hot topics in the campaign.
As the trade war continues, it’s becoming increasingly evident that the fallout will be felt by ordinary citizens on both sides of the border, with consumers likely to bear the brunt of the increased costs. Meanwhile, politicians like Ford and Freeland are pushing for targeted responses to safeguard Canadian interests in the face of mounting pressure from the US.