Ontario has cancelled a C$100 million ($68.12 million) satellite high-speed internet contract with Elon Musk's Starlink, fulfilling a pledge to retaliate against US tariffs imposed on Canadian goods.
Stephen Lecce, Ontario's minister of energy and mines, confirmed the termination of the satellite internet services deal at a Toronto news conference on Wednesday. Mr Lecce, who oversees broadband connectivity in Canada's most populous province, did not disclose the cost of ending the agreement.
"I can confirm that the premier has fulfilled his word, which is to cancel that contract because of the very reasons he cited in the past," Mr Lecce stated. "We are standing up for Canada."
The contract, signed last November, was intended to provide high-speed internet access to 15,000 homes and businesses in remote Ontario communities. Premier Doug Ford had threatened to scrap the deal in February, following US President Donald Trump's imposition of tariffs on Canadian imports. The cancellation was later delayed after Mr Trump agreed to a 30-day tariff pause.
SpaceX, Starlink's parent company, did not immediately respond to a request for comment.
The cancellation comes amid ongoing trade negotiations between Canada and the US, with a deadline of August 1. Mr Trump has threatened a 35 per cent tariff on all Canadian goods not covered by the US-Mexico-Canada trade agreement. Canadian Prime Minister Mark Carney said talks were at an "intense phase" but reiterated that a deal removing all US tariffs was unlikely.
Mr Lecce also highlighted other measures Ontario has taken against the US, including restricting US companies from bidding on provincial government contracts, removing US-made alcoholic beverages from shelves, and working to decouple the province's energy sector from the US.
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