News Summary

The Ontario government is reconsidering its $100 million contract with Elon Musk’s Starlink due to newly imposed tariffs by the United States. Premier Doug Ford initially reversed a decision to cancel the deal in February but is now prepared to terminate it to protect Canadian interests. The tariffs, implemented by the Trump administration, include a 25 percent surcharge on Canadian goods and a 10 percent tariff on energy exports. Ford indicated that Ontario might impose its own tariffs on electricity exports to the US if the situation persists, potentially affecting over 1.5 million US residents in states like Michigan, New York, and Minnesota. Additionally, Ontario’s primary liquor wholesaler has stopped purchasing US-made alcohol, and Prime Minister Justin Trudeau announced retaliatory tariffs on US goods. Despite concerns about Starlink’s financials, the FAA has partnered with the company to install terminals at airports, potentially offsetting losses from the canceled Ontario deal.