Ontario Pauses Retaliatory Measures, Including Starlink Contract, After U.S. Tariffs Delay

Ontario has temporarily halted several planned retaliatory actions against the United States, including the cancellation of a C$100 million ($68.12 million) contract with Elon Musk’s Starlink. Premier Doug Ford announced the decision following U.S. President Donald Trump’s move to delay the imposition of tariffs on Canadian imports by 30 days.

Ford had previously threatened to sever the Starlink deal, which would have seen Starlink provide high-speed internet to 15,000 remote homes and businesses in Ontario. The Premier also planned to bar U.S. companies from provincial contracts and remove American products from the shelves of Ontario’s liquor board.

“We have some good news today. We have temporarily averted tariffs that would have severely damaged our economy, giving time for more negotiation and time for cooler heads to prevail,” Ford posted on X, referring to the tariff reprieve.

Ontario, the most populous and industrially significant province in Canada, had prepared the retaliatory measures after Trump proposed a 25% tariff on most Canadian imports, excluding oil. The proposed tariffs sparked concerns about a potential recession if the measures remained in place for long.

Prime Minister Justin Trudeau announced Canada’s response on Saturday, which included imposing 25% tariffs on C$155 billion worth of U.S. goods. While Ford acknowledged that the ongoing trade tensions could delay or freeze various projects, he emphasized the temporary nature of the reprieve.