Ontario rips up Starlink deal, plans to tax electricity in response to Trump trade war

Lucas Powers · CBC News

· Posted: Mar 04, 2025 9:32 AM EST | Last Updated: March 5

Ontario volition rip up its $100-million woody with Elon Musk's Starlink internet provider and U.S. companies volition beryllium banned from procurement contracts as part of the province's effect to President Donald Trump's tariffs connected Canadian goods.

Premier Doug Ford announced the measures Tuesday, adding he's informing lawmakers in New York, Michigan and Minnesota that if the commercialized warfare "persists" Ontario volition enactment a 25 per cent surcharge connected energy flowing into the states and perchance chopped the travel disconnected entirely.

Ontario supplies astir 1.5 cardinal customers successful the border states with electricity.

"This is not the result anyone wanted," Ford said astatine Queen's Park successful Toronto. "We could person poured our efforts into making Canada and the U.S. the 2 richest, astir successful, safest, astir unafraid 2 countries connected the planet. Unfortunately, 1 antheral — President Trump — has chosen chaos instead."

Just aft midnight, Trump moved up with long-threatened 25 per cent tariffs connected astir Canadian goods. A 10 per cent tariff volition likewise beryllium applied to each Canadian vigor exports heading southbound of the border.

The import levies could wreak havoc connected captious Ontario industries similar car manufacturing and alloy production, arsenic good arsenic thrust up retail prices and substance much inflation. Auto giants based successful the state person warned plants could beryllium forced to halt accumulation wrong 5 to 8 days.

The tariffs travel contempt Trump himself being the president who signed the astir caller escaped commercialized woody with Canada and Mexico, saying successful 2020 it was "the champion and astir important commercialized woody ever made by the USA."

You tin work much astir tariffs, however they enactment and what they could mean for Canada here. 

WATCH | Ontario's effect to tariffs: 

During his quality conference, Ford again threatened to surcharge oregon chopped disconnected captious mineral exports to the U.S. should the commercialized warfare linger.

"We besides request to beryllium acceptable to excavation successful for a agelong fight," Ford said. "We request to beryllium acceptable to escalate utilizing each instrumentality successful our instrumentality kit."

Ford spoke conscionable aft hours Ontario's superior liquor wholesaler and retailer confirmed it volition halt purchasing and selling U.S. alcohol.

The LCBO previously offered immoderate 3,600 American products sourced from 35 states, amounting to astir $1 cardinal successful yearly sales. As the province's main booze distributor, it means grocery and convenience stores, bars and restaurants and different retailers volition nary longer beryllium capable to bargain U.S. alcohol.

WATCH | CBC's Dale Manucdoc reports connected the LCBO removing U.S. liquor from store shelves:

Prime Minister Justin Trudeau announced precocious Monday that Canada's retaliatory effect would see matching tariffs connected $155 billion worthy of U.S. goods — astir $30 cardinal worthy of goods close distant and the remaining $125 cardinal successful 21 days to springiness Canadian companies clip to set their proviso chains.

Trudeau said determination volition besides apt beryllium an enlargement of employment security benefits and nonstop enactment for businesses.

"Today the U.S. launched a commercialized warfare against Canada, their closest state and their closest friend. At the aforesaid time, they're talking astir moving positively with Russia, appeasing Vladimir Putin: a lying, murderous dictator. Make that marque sense," Trudeau said during a Tuesday greeting quality league successful Ottawa.

He added that helium believes Trump's eventual extremity is to weaken the Canadian system truthful helium tin effort to annex the country.

"First of all, that is ne'er going to happen. Canada volition ne'er beryllium the 51st state," helium continued.

Ford has antecedently expressed enactment for the national authorities to spell "dollar for dollar" with retaliatory tariffs against U.S. goods, and repeated that telephone Tuesday.

"Now we person nary choice, we person to respond," Ford said. "They person my afloat enactment for a beardown and forceful response."

The premier said American companies volition not beryllium capable to bid connected the $30 cardinal worthy of procurement contracts the state awards each year, oregon bid connected contracts related to his $200-billion infrastructure program to physique highways, tunnels, transit, hospitals and jails.

"U.S.-based businesses volition present suffer retired connected tens of billions of dollars successful revenues," Ford said. "They lone person President Trump to blame."

As for the woody with Starlink to provide high-speed net to bluish Ontario, agrarian and distant First Nation communities, "it's done, it's gone," helium said.

"We won't grant contracts to radical who alteration and promote economical attacks connected our province and our country."

His Progressive Conservatives caller predetermination level included astir $20 cardinal successful projected caller spending aimed astatine supporting industries and workers who could beryllium wounded by tariffs. That includes a caller $5-billion Protect Ontario Account, $10 cardinal successful enactment for employers done a taxation deferral, up to $3 cardinal much successful payroll and premium alleviation and up to $40 cardinal for municipalities.

Ford cautioned tough times lie head.

"Businesses and families volition consciousness the symptom of this needless fight, but unneurotic we're going to basal up for Canada," helium said. "We're going to get done this much agreed than ever before."