In Toronto on 30 July, the Ontario Starlink contract was officially canceled by the province, ending a near $100 million internet deal with Elon Musk’s company. Premier Doug Ford followed through on his word after the US imposed rigid new tariffs on Canada.
The move is a stark reversal in how Ontario deals with cross-border business, especially where national interests are at stake. The province had planned to use Starlink’s satellite network to push into underserved communities, but politics have now wrecked what was portrayed as a promising tech launch.
Ontario Premier Doug Ford Says He’s Ripping Up Starlink Contract
Signed in November 2024, the agreement was to bring high-speed satellite internet to 15,000 rural businesses and homes. Via low-Earth orbit satellites, the service, a part of the Starlink in Canada deal, was promoted as a modern solution for rural communities where connectivity is limited.
SpaceX-owned Starlink became popular due to its potential to deliver fast, reliable internet to regions where traditional infrastructure is difficult to set up. The Canada Starlink contract was expected to help bridge historical service gaps in rural and northern Ontario.
Yet, when President Trump pushed for a harsh US tariff on Canada, the partnership became political ammunition. Back in February, Premier Doug Ford had already threatened he would walk away if trade tensions escalated.
“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,” Stephen Lecce, Ontario Energy Minister said. “We are defending Canada.”
Ontario Cancels $100M Starlink Contract in Response to Trump’s Tariffs
The Ontario Starlink action has broader economic implications. Lecce said Ontario is now limiting American companies’ ability to offer on government contracts, pulling US alcoholic drinks off store shelves, and examining possibilities to disconnect parts of the province’s energy grid from the US.
For now, it’s unclear if Ontario ends Starlink contract what it will do to those 15,000 rural users who had been promised service. With the deal terminated, officials may need to search for an alternative to Starlink Canada to keep pushing their rural internet plans. So far, SpaceX hasn’t responded to the cancellation. Meanwhile, federal talks with the US continue, but Prime Minister Mark Carney has said a full deal to lift tariffs remains unlikely.
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