Canada’s Ontario has launched a strong response to U.S. President Donald Trump’s 25% tariffs on Canadian imports. Premier Doug Ford announced sweeping measures, including canceling a $100 million contract with Elon Musk’s Starlink and banning American liquor from stores. The province is also taking steps to block U.S. companies from government contracts and considering further economic actions.
Starlink Contract Scrapped
A major casualty of Ontario’s decision is its agreement with SpaceX’s Starlink. The $100 million deal, signed in 2024, aimed to provide satellite internet to northern and rural communities. Ford made it clear that Ontario would not support companies that contribute to what he called “economic attacks” on the province and the country.
No More U.S. Liquor in Ontario
Another immediate action is the removal of American liquor brands from Ontario’s Liquor Control Board stores—the province’s largest alcohol distributor. The agency’s website was taken down temporarily to eliminate American listings, while store shelves were cleared of U.S. products.
Ontario Blocks U.S. Companies from Government Contracts
In a further escalation, Ontario will bar American companies from securing government contracts, cutting them off from billions of dollars in potential revenue. Ford emphasized that the province would not do business with entities linked to policies that harm Canada’s economy.
Possible Electricity Surcharge and Mineral Export Limits
Ontario is also exploring additional countermeasures. Ford warned that if Trump introduces more tariffs, Ontario might impose a 25% surcharge on electricity exports to the U.S. He also raised the possibility of restricting critical mineral exports, a move that could impact U.S. industries reliant on Canadian resources.
Canada Responds to U.S. Tariffs
Ontario’s actions are part of a broader Canadian response to the tariffs, which came into effect on Tuesday. Canada has already targeted $20 billion worth of U.S. imports with retaliatory measures. More tariffs, affecting an additional C$125 billion in American goods, are expected after a 21-day consultation period.
Trump Imposes Reciprocal Tariffs on EU, China, Brazil, and India, Effective April 2
President Trump has announced reciprocal tariffs on the EU, China, Brazil, and India, set to take effect on April 2. The decision is intended to counter high foreign tariffs on U.S. goods and promote fair trade. However, the move could escalate global economic tensions and spark trade disputes.
Global Backlash and Potential Tariff Rollback
Canada isn’t alone in its opposition—Mexico and China have also announced retaliatory measures against the U.S. Trump has defended his tariffs as necessary to address border security concerns and the flow of illegal substances like fentanyl.
However, there could be a shift in U.S. policy soon. Commerce Secretary Howard Lutnick suggested that Trump might scale back some tariffs on Canada and Mexico, with an announcement expected as early as Wednesday.
For now, Ontario’s bold actions highlight Canada’s determination to push back against economic pressure from the U.S.
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