Doug Ford's government will have to pay a price for its canceled Starlink deal

The deal is now formally done and dusted

In the wake of US President Donald Trump’s initial tariff threats against Canada, Ontario Premier Doug Ford promised that his government would cancel a $100 million deal with Elon Musk’s Starlink satellite internet company to retaliate against Trump's trade choices. 

Ford and the Starlink deal

Ford eventually did cancel Ontario's deal with Starlink once Trump levied his promised 25% on Canada in March 2025, and we’re now learning more details about what canceling this deal will cost the people of Ontario. According to a Ford official, it won’t be zero. 

The contract is cancelled

“Our government has cancelled the Starlink contract,” a spokesperson for the provincial government wrote in an email statement to Global News before adding the government was still seeking an alternative solution to provide internet to rural Ontarians. 

Details about the deal

The $100 million deal with Starlink was inked shortly after Trump was elected and promised to bring internet to thousands of rural Ontarians. However, the internet deal became the first victim of Ford’s aggressive strategy to retaliate against Trump’s tariff policies. 

Legislation or negotiations?

According to Global News, the provincial government always knew that there would be a cost associated with canceling its deal with Starlink, and even considered ending the deal through legislation, but ultimately chose to negotiate a cancellation with Starlink.

Ontario is left on the hook

However, one senior official told the outlet that negotiations over the fee went well but still left Ontario on the hook. But how did the provincial government get to this point?

Ford was ready to fight Trump

In February 2025, Ford had previously floated cutting Ontario’s energy exports to the United States along with banning American alcohol from shelves in the province, something that he did do after Trump announced his tariffs on Canada, in response to Trump's proposed tariffs. But at one point in the fight, Ford decided to go a step further.

No more US access to government contracts

In an effort to make Trump’s decisions hurt, Ford announced that Ontario would ban all US companies from provincial contracts on X. That ban was effective immediately and singled out one of Trump’s closest allies, Elon Musk, and his company's recent deal with the Ontario government. 

Ontario spends billions

“Every year, the Ontario government and its agencies spend $30 billion on procurement, alongside our $200 billion plan to build Ontario.U.S.-based businesses will now lose out on tens of billions of dollars in new revenues,” Ford wrote on X in early February 2025. 

Trump was the only person to blame

“They only have President Trump to blame,” Ford continued, adding: “We’re going one step further. We’ll be ripping up the province’s contract with Starlink. Ontario won’t do business with people h***bent on destroying our economy.” It is important to note that Starlink is a subsidiary of SpaceX, a company started and led by Musk. 

A major attack on Elon Musk?

Ending Ontario’s Starlink contract was set to come as a major blow to rural Canadians, but it was thought to be an even bigger pain for SpaceX CEO Elon Musk, the man some believed might have been behind some of Trump’s more worrying economic policies at the time. 

Canceling a $100 million dollar deal

CBC News reported that the Ontario government signed a $100 million dollar deal with Starlink in November 2024. The deal was meant to help provide internet access to up to 15,000 eligible homes and businesses in rural Ontario. However, the deal became a target and a way to hit back at President Trump after he began attacking Canada. 

Ford wasn't happy with Musk

Whether or not Ford’s decision was a deliberate jab at Elon Musk was unknown at the time, but Ford hadn't been very quiet about his dislike for the SpaceX, Tesla, and Starlink CEO. On February 3rd, he called out Musk by name during a speaking event. 

Trump’s team is hurting Canadians

Ford explained that Musk was a "part of the Trump team that wants to destroy families, incomes, destroy businesses” and added that he wanted “to take food off the table of people, hard-working people, and I'm not going to tolerate it."

Ontario’s election

At the time. Ford was in the midst of an election set to take place on February 27th. He had positioned himself as needing a new mandate from Ontarians to counter the economic policies and trade decisions of the new Trump administration. 

Photo Credit: Facebook @fordnation

Canada will win the fight

“Canada didn't start this fight with the U.S., but you better believe we're ready to win it,” Ford wrote in a message on X. Who his decision would hurt most was unclear at the time, but it was a bold move in response to the tariffs Trump placed on Canada on February 1st, 2025. 

Elon Musk's response to Ford's decision

Musk offered a simple response to Ford's announcement, writing on his social media platform X: "Oh well." However, Musk wouldn't need to take any legal action against the Ontario government at that time because Ford reversed his decision later on the same day it was announced.

A 30-day delay in the trade wart

Fortunately for citizens of both countries at the time, Trump reached a deal with Justin Trudeau to avert a trade war, and Trump's proposed 25% tariff was postponed for 30 days late in the evening on February 3rd.

Pausing Ontario's retaliatory measures

In response to the news, Ford announced on X that with the United States pausing its tariffs, Ontario would also pause its "retaliatory measures." However, he warned Ontario wouldn't hesitate to put them back in place if Trump proceeded with his tariffs