Canada has announced that it has broken its agreement with Starlink (SpaceX) in response to U.S. trade sanctions. Ontario Premier Doug Ford said the decision was due to the 25 percent duties that newly elected U.S. President Donald Trump imposed on Canadian goods. The province initially suspended action after temporarily delaying the tariffs, but after they were reintroduced against Canada and Mexico, the agreement was terminated.
“We will not cooperate with those who attack our economy,” Ford emphasized, referring to Elon Musk‘s ties to Trump. SpaceX’s losses are estimated at 100 million Canadian dollars ($68.9 million U.S. dollars). But the impact will also be felt by the 15,000 households and businesses in remote regions of Canada that have lost access to subsidized internet via Starlink satellites.
Canada and Ontario didn’t start this trade war with President Trump, but Team Canada is ready to win it.
As a first step in our response, Ontario will rip up our contract with Starlink, take U.S. alcohol off LCBO’s shelves and ban U.S. companies from government procurements. pic.twitter.com/ppabqSVjjR
— Doug Ford (@fordnation) March 4, 2025
As countermeasures, Ontario has also banned U.S. companies from participating in government procurement and threatened to increase electricity prices for the United States. “American businesses will lose billions. They should thank Trump,” the prime minister said.
Ford also accused Musk of “betrayal”: the SpaceX CEO attended Queen’s University in Ontario, but now, according to the politician, he is “attacking the country that educated him.” Recalling Musk’s scandalous tweet (“Canada is not a real country”), the prime minister said, “He should be ashamed of himself!”
SpaceX has not commented on the situation yet. But last year’s data shows that the company serves more than 400,000 customers in Canada. Experts see the conflict as risks to the country’s technological infrastructure and the possibility of new economic clashes between the US and its allies.
Earlier we reported on how Kyivstar introduced Starlink satellite communications.
According to PC Mag
