Ontario Cancels Starlink Contract and Restricts U.S. Companies from Provincial Contracts
In early 2025, amid escalating trade tensions after the United States imposed tariffs on Canadian goods, Ontario Premier Doug Ford announced that the province would cancel its approximately C$100-million contract with Starlink (SpaceX) and restrict U.S.-based companies from new provincial government contracts.
Ford also stated: “They only have President Trump to blame.”
The Starlink agreement, signed in November 2024, was intended to deliver high-speed satellite internet to roughly 15,000 homes and businesses in rural and northern Ontario. The province later confirmed that a termination fee was negotiated; the exact amount remains confidential but was described by officials as substantially lower than the full contract value.
- The Starlink contract has been formally ended.
- Ontario has been seeking Canadian alternatives for rural broadband.
- The broader procurement restrictions on U.S. firms were introduced as a retaliatory measure tied to the duration of U.S. tariffs; subsequent clarifications limited the scope (e.g., exemptions for companies with significant Canadian operations).
The moves formed part of a series of provincial responses that also included temporary measures such as restrictions on U.S. alcohol sales through the LCBO.