Trade war begins: After Trump's tariffs, Canada province bans US firms & dumps Musk's Starlink

Canada's Ontario on Monday banned US firms from government contracts in a move that will scrap $100-million deal with Elon Musk's Starlink.

Doug Ford, premier of Ontario, said the ban would persist unless the Trump administration lifts recently imposed tariffs on Canada.

Last year, the Doug dispensation had inked an agreement with Musk, who is a key part of the Trump government, to deliver high-speed internet to remote residents in rural and northern Ontario.


"Every year, the Ontario government and its agencies spend $30 billion on procurement, alongside our $200 billion plan to build Ontario. US-based businesses will now lose out on tens of billions of dollars in new revenues. They only have President Trump to blame. We’re going one step further. We’ll be ripping up the province’s contract with Starlink. Ontario won’t do business with people hellbent on destroying our economy. Canada didn't start this fight with the U.S., but you better believe we're ready to win it," the Ontario premier wrote on X.


Earlier, Ford announced that his officials would soon be removing American products from provincial liquor store shelves.

His statement came a day after British Columbia Premier David Eby announced that the local authority will stop buying liquor from US Republican states.

Canada's move is in retaliation to Trump's sweeping new tariffs on imports from Canada, Mexico and China, a move that has triggered sharp reactions from global leaders and financial markets.

The tariffs, which Trump says are aimed at protecting American workers and industries, have sparked fears of economic retaliation from affected countries.

Meanwhile, Trump said that he would talk to Trudeau at 3.00 PM about drug pouring through the borders of Canada.

"Canada doesn’t even allow U.S. Banks to open or do business there. What’s that all about? Many such things, but it’s also a DRUG WAR, and hundreds of thousands of people have died in the U.S. from drugs pouring through the Borders of Mexico and Canada. Just spoke to Justin Trudeau. Will be speaking to him again at 3:00 PM," Trump said on his social media platform Truth Social.