Canada Bans US Firms from Govt Contracts, Dumps Elon Musk’s Starlink Deal

  • Ontario, Canada’s most populous province, has banned US companies from bidding on government contracts worth tens of billions of dollars.
  • The province has also dumped a Can$100 million contract with Elon Musk’s Starlink to provide internet services to remote areas.
  • The move is a response to US tariffs imposed on Canadian imports, with Ontario Premier Doug Ford blaming President Trump for the economic tensions.

In a bold move, Ontario, Canada’s most populous province, has announced a ban on US companies bidding on government contracts worth tens of billions of dollars. This decision is a direct response to the US tariffs imposed on Canadian imports, which have sparked economic tensions between the two nations.

Ontario Premier Doug Ford made it clear that the province will no longer do business with US companies that are “hell-bent on destroying our economy” ¹. Ford also announced that the province is dumping a Can$100 million contract with Elon Musk’s Starlink, which was signed in November to provide internet services to 15,000 homes and businesses in remote northern parts of Ontario.

The US tariffs, imposed by President Trump, are set to take effect on Tuesday, with a 25% tariff on Canadian imports. In response, Ontario’s liquor stores have started pulling US beer, wine, and spirits off shelves, with other Canadian provinces following suit.

The government-run Liquor Control Board of Ontario is one of the world’s largest single buyers of alcohol, supplying its own stores as well as local restaurants, bars, and other retailers in the province. The board sells almost Can$1 billion worth of US alcohol each year, making this move a significant blow to US businesses.

Ford’s decision is a clear message to the US government that Ontario will not tolerate what it sees as unfair trade practices. With tensions between the two nations escalating, it remains to be seen how this move will impact the economic relationship between Canada and the US.

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