Ontario has canceled a $68.4 million (C$100 million) contract with Elon Musk’s Starlink, citing U.S. tariffs on Canadian goods as the reason.
The contract, signed in November 2024, aimed to bring high-speed internet to over 15,000 rural homes in the province. However, Ontario Premier Doug Ford previously warned of termination after President Trump imposed a 25% tariff on most Canadian imports.
Minister of Energy and Mines Stephen Lecce confirmed the cancellation at a press conference Wednesday. “I can confirm that the premier has fulfilled his word, which is to cancel that contract because of the very reasons he cited in the past,” Mr. Lecce said. “We are standing up for Canada.”
Mr. Lecce did not clarify whether Ontario would face penalties or if an alternative provider would be chosen.
Although a 30-day tariff pause had delayed the decision earlier this year, new U.S. tariffs—expected to rise to 35% on August 1—accelerated Ontario’s move. Negotiations between U.S. and Canadian officials are ongoing.