The leaders of Ontario, Canada’s most populous province, have temporarily suspended their threat to cancel a $68 million Starlink contract for remote satellite connectivity. This follows U.S. President Donald Trump's decision to delay planned tariffs on Canadian goods by at least 30 days.
“With the U.S. pausing tariffs, Ontario will also pause our retaliatory measures,” Ontario Premier Doug Ford announced on February 3rd via X, the social media platform owned by Elon Musk, CEO of SpaceX, Starlink's parent company. This pause also includes a threatened ban on U.S. companies from provincial contracts. A 25% tariff on most Canadian imports was scheduled to take effect February 4th, with oil facing a 10% surcharge. Canadian Prime Minister Justin Trudeau had also planned to impose approximately $107 billion in retaliatory tariffs on U.S. goods.
President Trump stated that tariffs on Canada, similar to those recently postponed for Mexico, would remain unless action is taken to curb illegal migration and fentanyl smuggling. The U.S. is also increasing tariffs on China by 10%. Following a February 3rd call with Trump, Trudeau confirmed that Canada would make new commitments, including establishing a Canada-U.S. Joint Strike Force to combat organized crime, fentanyl trafficking, and money laundering.
Trump’s broader trade strategy, including proposed tariffs on the European Union, has raised concerns about its potential impact on the cost and availability of materials for the U.S. space industry. SpaceX did not comment on the situation.
Ontario’s government awarded the Starlink contract in November, aiming to provide internet access to 15,000 unserved and underserved homes and businesses by 2025. Starlink competed against Xplore, a rural connectivity specialist, for the Ontario Satellite Internet (ONSAT) program. Xplore utilizes satellite capacity from geostationary operators like Telesat and EchoStar, along with fiber and wireless technologies.
A OneWeb spokesperson confirmed they did not bid on ONSAT. Rock Networks became the first Canadian company to announce a distribution agreement for OneWeb’s satellite capacity in May 2021. Telesat, meanwhile, operates a geostationary fleet and plans to deploy broadband satellites for its LEO constellation, Lightspeed, next year, with Canadian government funding covering more than half of the $3.5 billion cost.