United States: The leader of Ontario, Canada’s most populous province, claims that US companies need to await the elimination of President Donald Trump’s trade tariffs before obtaining provincial government bids.
More about the news
Premier Doug Ford declared that his government would terminate its C$100 million contract with Elon Musk’s satellite internet company Starlink.
“Ontario won’t do business with people hell-bent on destroying our economy,” as mentioned by Ford, who is running in the province snap election he called last week.
US President Donald Trump conducted a telephone conversation with Canadian Prime Minister Justin Trudeau to discuss the 25 percent import duties on Canadian products that Trump had introduced during the weekend, BBC reported.
The US president unveiled import taxes affecting Canadian and Mexican commodities and Chinese products, which would take effect on Tuesday after his Saturday announcement.
The Canadian energy sector will have to deal with a lower 10 percent tax obligation. The Canadian prime minister announced immediate countermeasures as a response to US tariffs.
BREAKING🚨:Ontario Canada ends contract with Elon Musk's Starlink over US tariffs.
— Elsie🌽💙 (@elsiesmith36) February 3, 2025
So punish Canadians with poor internet as a punishment? pic.twitter.com/Svg2aWmvVM
What is the response of Canada?
The Canadian Prime Minister promised C$30bn worth of American goods tariffs this week before expanding them to C$155bn ($107bn; £86bn) within 21 days of US implementation.
Canada has “no choice but to hit back, and hit back hard,” Ford stated at a news conference on Monday, and added, “Canada didn’t start this fight with the US, but you better believe we’re ready to win it,” BBC News reported.
About the deals
The Ontario government joined forces with Starlink when Ford announced his aim to target the company.
Ontario initiated a partnership with Starlink in November 2019 to provide high-speed satellite internet to all 15,000 eligible, unserved, and underserved properties and residences.
Musk’s leadership at SpaceX enables him to stand as one of Trump’s strongest allies, especially since he heads Starlink operations. The official spokesperson from Space X has not provided BBC with any comment.
According to Ford, the province stands strongly in its position if Starlink files a lawsuit, but he will permit the province to pay compensation. The neighboring Canadian provinces follow the same direction.
Officials based in Quebec, together with officials from New Brunswick and British Columbia, made public declarations about their strategy to remove United States alcohol products from provincial liquor shops while planning to review existing contracts with American companies.
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