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Starlink Deal in Limbo as Ontario Halts Retaliation Against US Tariffs 

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Ontario Premier Doug Ford announced a temporary halt to the province's planned retaliatory measures against the US after a delay in US tariffs

Ontario Premier Doug Ford announced a temporary halt to the province’s planned retaliatory measures against the US after a delay in US tariffs, originally set for February 4, following President Trump’s agreement to postpone US-Canada trade tariffs on Canadian goods for at least 30 days, allowing more time for negotiations. 

Ford said that Ontario would now pause its retaliatory measures, which included removing US alcohol from LCBO shelves set to start Monday night. However, Ford has warned that the Canada and US trade dispute could resume if Trump proceeds to impose the tariffs. 

https://x.com/fordnation/status/1886532075517321288

Ontorio’s Premier also threatened that if President Trump proceeds forward with the current trade tariffs between US and Canada then they won’t hesitate to pull American products from LCBO shells and ban American companies from procurement provincially as well. 

One of Ontario’s key retaliations to the Canada and US trade tariffs had been to cancel a nearly $100 million contract with Elon Musk’s Starlink to bring satellite internet to rural areas.  

The November 2024 deal was supposed to provide internet to 15,000 people in Northern Ontario by June 2025. But with the tariff delay, Ford confirmed the agreement would proceed for now but warned it could be canceled if tensions escalate. 

Ford had earlier claimed that US-Canada trade tariffs were terrible for Ontario’s economy and promised that his government would not do trade with any US company. 

US Canada Trade War Tariffs 

The US- Canda trade tariffs, announced over the weekend by Trump, would have imposed 25% tariffs on a wide range of Canadian products, including vehicles and agricultural items to consumer goods. 

Canada responded with countermeasures, led by Prime Minister Justin Trudeau, that included 25% tariffs on more than $155 billion worth of US imports. Although this delay in tariffs trade with US and Canada is a relief, Ford warned that Ontario should be ready for action in case there was still a sign of trade instability. 

“We’re already feeling the impact. So long as our trading relationship with our largest trading partner is up in the air, we will continue to see many potential projects frozen,” Ford said. 

The move by Ford has put him under criticism by political opponents. Ontario Liberal Leader Bonnie Crombie and Green Party Leader Mike Schreiner labeled the deal for Starlink a “sweetheart deal” and targeting Ford’s larger economic strategy.  

Also, Ontario NDP Leader, Marit Stiles, wants the province to have a “tariff-proof” economy. 

Final Thoughts 

The US trade balance with Canada is very fragile right now, but Canada might eventually fall into an economic downturn if a tangible resolution is not reached. 

While retaliatory measures are paused, Ontario’s economy faces a serious threat from a potential US-Canada trade war due to Trump’s 25% tariffs increase. 

The incoming Ontario election on February 27 could influence whether the province escalates the US-Canada trade relationship and how it manages the situation.  

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