Ontario will proceed with Starlink deal as the U.S. temporarily pauses tariffs

Starlink, a satellite network owned by Elon Musk (TipRanks).

By: Rishika Verma

The province will proceed with the partnership deal with Starlink, as U.S President Donald Trump announces a 30-day pause on tariffs being imposed on Canadian imports.

Premier Doug Ford had previously declared on Monday morning that the Starlink contract was going to be terminated ahead of President Trump’s executive order and Elon Musk had shrugged in response to the decision.

The U.S president postponed the 25 per cent tariffs on Canadian goods hours before the order was set to come in effect, which resulted in Ontario also pausing the measures they were going to take in fighting back such as removing American alcohol off LCBO shelves and cancelling the $100M Starlink contract.

Back in November, the province had introduced a new program called Ontario Satellite Internet (ONSAT) which is a collaboration with Starlink, a satellite network owned by Elon Musk through his tech company SpaceX. The program was part of the $4 billion investment in bringing high-speed internet to 15,000 households and communities in northern Ontario starting this June.

As part of the contract, Starlink would be required to engage with impacted Indigenous communities to ensure equal accessibility and offer job opportunities when it was  possible. They would also support installation and ongoing maintenance and care for the many homes that were going to benefit from this deal.

The goal is by the end of 2025, all eligible applicants in the remote and rural communities across the province would be able to get fast-speed satellite internet service.

According to a news release from November 2024, Ontario has finalized agreements worth $2.5 billion for over 270 projects that will implement high-speed internet access and improved cellular connectivity across the province. By the end of the month, over 100,000 homes and businesses had been connected to fast-speed internet. 

The report says that approximately 450,000 additional premises will also get high-speed satellite internet service by the end of this year.

If President Trump moves ahead with his tariff threat, Ford says that ripping off the Starlink deal is just one step in  the many moves that the province will make to cut American companies out of provincial contracts. 

As negotiations between the two countries are still ongoing, the province is still keeping a sharp eye on the tariff threat and will take any necessary actions to fight back in the trade war.  

 

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