Canada bans U.S. companies from Govt contracts, cancels Starlink deal over tariffs

Ontario, Canada’s most populous province, has banned U.S. companies from bidding on government contracts worth billions of dollars and scrapped a major deal with Elon Musk’s Starlink in response to new American tariffs.

Premier Doug Ford announced the decision on Monday, stating, “Ontario won’t do business with people hellbent on destroying our economy.” He added that U.S. firms losing out on these opportunities “only have President Trump to blame.”

As part of the retaliation, Ford canceled a Can$100 million (US$68 million) contract with Starlink, which was set to provide internet services to 15,000 homes and businesses in northern Ontario starting in June. The decision comes ahead of Trump’s planned 25% tariffs on Canadian imports, set to take effect on Tuesday.

Ontario’s liquor stores have also started removing U.S. beer, wine, and spirits from shelves, with provinces like Quebec, Nova Scotia, and British Columbia following suit. The Liquor Control Board of Ontario (LCBO), one of the world’s largest alcohol buyers, sells nearly Can$1 billion worth of U.S. alcohol annually but will now stop such purchases.

Trump and Canadian Prime Minister Justin Trudeau spoke about the tariffs earlier on Monday and are expected to continue discussions.