Canadian Premier cancels $100,000,000 contract with Elon Musk in retaliation for Trump tariffs

Doug Ford had warned contracts would be cancelled with those who ‘encourage economic attacks’ on Canada

A Canadian Premier has just cancelled an eye-watering $100 million contract with Elon Musk in retaliation for the US President’s tariffs.

Doug Ford Fires Back at Trump, Cancels Starlink Contract Amid Trade War

In a bold retaliatory move, Ontario Premier Doug Ford has scrapped the province’s contract with Elon Musk’s Starlink, escalating tensions in the ongoing North American trade battle, reports CBC.

Ford didn’t stop there. He also announced a sweeping ban on all U.S.-based companies from participating in future provincial contracts, slamming Donald Trump for choosing “chaos over shared prosperity.”

“If the U.S. wants to play hardball, we’re ready to hit back twice as hard,” Ford declared.

With the trade war heating up, this latest move could further strain economic ties between Canada and the U.S.—but Ford appears unapologetic in his stance.

The Premier said Ontario is hitting the US back (GEOFF ROBINS/AFP via Getty Images)

Ford’s decision comes on the heels of his explosive threat to cut off power to 1.5 million U.S. customers, a move sparked by President Donald Trump’s rollout of ‘catastrophic’ tariffs on Canada.

Despite a 30-day pause, Trump officially signed off this week on 25% tariffs on Canadian exports and 10% tariffs on Canadian energy, escalating the economic standoff between the two nations.

The 47th POTUS had previously declared that China, Mexico, and Canada must be held “accountable” for failing to stop the flow of deadly drugs into the U.S.—a claim that further soured relations. Adding fuel to the fire, Trump brazenly suggested that the only way for Canada to avoid these tariffs would be to become the U.S.’s ‘cherished’ 51st state.

With tensions at a boiling point, Ford’s retaliatory moves could signal a major shift in the Canada-U.S. economic relationship.

Canada has threatened further measures against the US if the trade war 'persists' (NBC)

Ford Fires Back: Ontario Scraps Starlink Contract Amid Trade War

Ontario Premier Doug Ford has torpedoed the province’s contract with Starlink, the satellite internet subsidiary of Elon Musk’s SpaceX, in a fiery retaliation against U.S. tariffs.

The deal, inked just last November, aimed to provide high-speed internet to 15,000 rural homes and businesses by summer. But with tensions soaring over Trump’s sweeping trade penalties, Ford didn’t mince words when asked about the project at a March 4 press conference:

“It’s done. It’s gone.”

Taking direct aim at Musk’s Department of Government Efficiency (DOGE)—the cost-cutting task force he leads for the U.S. president—Ford made his stance crystal clear:

“We won’t award contracts to people who enable and encourage economic attacks on our province and our country.”

Ontario’s bold stance doesn’t stop there. The province’s primary liquor wholesaler and retailer has also announced a sweeping boycott of U.S. alcohol, further intensifying the North American trade showdown.

Donald Trump and Canada Prime Minister Justin Trudeau are now in a trade war over tariffs (NICHOLAS KAMM/AFP via Getty Images)

Ford Warns of Energy and Mineral Retaliation Amid Trade War Tensions

Ontario Premier Doug Ford has doubled down on his threat to cut off energy supplies to the United States, warning lawmakers in New York, Michigan, and Minnesota that if the trade war with President Trump continues, he could impose a 25 percent surcharge on electricity flowing across the border, or even completely shut it off.

“We won’t hesitate,” Ford declared, hinting that Ontario could also take drastic measures by imposing surcharges or even halting mineral exports to the U.S.

Ford expressed his frustration, emphasizing that this isn’t the outcome anyone wanted:

“We could have worked together to make Canada and the US the two richest, safest, and most secure countries on the planet. Unfortunately, one man — President Trump — has chosen chaos instead.”

The provincial government is concerned that the newly imposed tariffs could devastate key Ontario industries, including auto manufacturing and steel production, while causing retail prices to rise and further fueling inflation.

The Premier continued, “We need to be prepared for a long fight. We will escalate and use every tool in our toolkit.”

Known for his bold rhetoric, Ford also echoed his previous statement, telling NBC News:

“If they want to try to annihilate Ontario, I will do anything, including cutting off their energy — with a smile on my face. They need to feel the pain. They want to come at us hard? We’ve got to go back twice as hard.”

Ford, who recently secured a third consecutive majority in Ontario, appears ready to push back hard against the U.S. as tensions rise.