Ontario-Musk Starlink Deal Revived After Tariffs Paused

Progressive Conservative Leader Doug Ford speaks from the podium during a visit to Walker Construction in St. Catharines, Ont., on Jan. 31, 2025. The Canadian Press/Peter Power

Ontario Progressive Conservative Party Leader Doug Ford has reneged on his vow to tear up a $100 million agreement with Elon Musk’s Starlink after U.S. President Donald Trump paused his tariff threat on Canada for 30 days.

Ford confirmed on Feb. 3 the Starlink agreement with Musk will proceed for the time being and other retaliatory measures planned by Ontario, such as banning U.S. alcohol from LCBO stores, will be put on hold.

“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 said in a statement on social media. “With the U.S. pausing tariffs, Ontario will also pause our retaliatory measures.”

Ford had previously announced the same day the province would be terminating its contract with Starlink to deliver high-speed internet to remote and rural communities as a retaliatory measure.

During the Feb. 3 press conference, Ford had also said the province would stop doing business with American companies.

“Starting today and until U.S. tariffs are removed, Ontario is banning American companies from provincial contracts,” Ford told reporters during a campaign stop in Etobicoke, Ont. “We'll be ripping up our contract with Elon Musk’s Starlink. Ontario won’t do business with people hell bent on destroying our economy.”

The decision was halted just hours later, however, after an afternoon phone call between Prime Minister Justin Trudeau and Trump resulted in a 30-day pause on the tariffs. Trump had previously ordered 10 percent tariffs on Canadian oil and gas exports and 25 percent tax levied on all other products.

Ford called the 30-day reprieve negotiated by Trump and Trudeau “good news,” but said the pause doesn’t mean Canada won’t face American tariffs at some point in the future.

“Whether it’s tomorrow, in a month or a year from now when we’re renegotiating the United States-Mexico-Canada Agreement, President Trump will continue to use the threat of tariffs to get what he wants,” he said.

“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 and projects that were already underway put at risk.”

Ford, who called a snap election last week, has been campaigning heavily on protecting Ontario from U.S. tariffs. He has said he is hoping to win a stronger majority government with a clear mandate before heading into dealings with the Trump administration over tariffs.

The province announced its plan to partner with Starlink last November to launch the Ontario Satellite Internet (ONSAT) program. The initiative aims to provide high-speed satellite internet access to 15,000 qualifying homes and businesses in rural, remote, and northern areas. Services were expected to begin in June of 2025.