$100 Million Starlink Contract Falls Victim to Tariffs Slapped on Canada 

3rd Feb 2025
$100 Million Starlink Contract Falls Victim to Tariffs Slapped on Canada 

Premier of Ontario Doug Ford announced on 3rd February that the province was cutting a contract with Starlink. Ford inked the contract with Starlink in November in order to provide high speed internet access to the northern part of the province. The change is part of the province’s response to the U.S. introducing 25% tariffs on most goods exported from Canada to the U.S.

The Canadian Broadcasting Corporation (CBC) quotes Ford as saying that the contract is being ‘ripped up’, along with ending permission for American companies to participate in tenders for public works. The Starlink contract was worth $100 CAD.

Tariffs and elections

The CBC quotes Ford as saying that Starlink owner Elon Musk is “part of the Trump team that wants to destroy families, incomes, destroy businesses”. Ford came under pressure as recently as last week over the contracting procedure. The issue is being highlighted as Ontario heads into a general election on 27th February. U.S. President Donald Trump’s execution of his own campaign promises to simultaneously lower inflation, secure American borders and reorganize international trade in the U.S.’s favour have resulted in a 25% tariff on Canadian exports into the country, and are already roiling the province’s economy.

Trade wars and launches

Elon Musk’s response to the loss equaled ‘meh’:

The spat also comes as calls increase for Canada to invest in sovereign launch capacity. Polaris Aerospace issued a white paper examining the topic. Also, Canada’s Maritime Launch Services company is currently building a spaceport near Canso, N.S. MLS had a successful suborbital launch in 2023 and orbital launches could take place as early as 2027..

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