Canada Hits Back at Trump’s Tariffs, Bans US Firms from Bidding on Contracts, Scraps Musk’s Starlink Deal

Canada has escalated its trade dispute with the United States, announcing a series of countermeasures in response to newly imposed tariffs. Ontario, the country’s largest province and economic powerhouse, has banned US companies from bidding on government contracts worth tens of billions of dollars. It has also canceled a major deal with Elon Musk’s Starlink.

The move follows US President Donald Trump’s decision to impose 25 percent tariffs on Canadian imports, set to take effect Tuesday. In response, Prime Minister Justin Trudeau announced that Canada would impose its own 25 percent tariffs on US goods worth Can$155 billion (US$106 billion).

Ontario Premier Doug Ford confirmed the province’s ban on US firms in a post on X, stating, “Ontario won’t do business with people hellbent on destroying our economy. US-based businesses will now lose out on tens of billions of dollars in new revenues. They only have President Trump to blame.”

The province also terminated a Can$100 million (US$68 million) contract with Musk’s Starlink, originally signed in November, which aimed to provide satellite internet to 15,000 homes and businesses in northern Ontario starting in June. Musk, the world’s richest man and a close adviser to Trump, has been a key figure in US business and technology sectors.

Ontario’s liquor stores have also begun pulling US-made beer, wine, and spirits from their shelves, with other provinces—including Quebec, Nova Scotia, and British Columbia—following suit. The Liquor Control Board of Ontario, one of the world’s largest buyers of alcohol, typically imports nearly Can$1 billion worth of US alcoholic products annually.

Trump and Trudeau spoke about the tariffs on Monday, with Trump later stating on his Truth Social platform that they would continue discussions later in the day.