Canadian Politicians Reject Starlink Agreement and Propose a Complete Tariff on Tesla Imports
Premier Doug Ford of Ontario is scrapping a $100 million agreement with Elon Musk's Starlink, calling out former President Trump for the situation. In a press conference on Monday, Ford pointed the finger at Trump, stating, "President Trump is the only one to blame. Maybe Elon Musk can give him a call? This is one of the repercussions."
The contract, signed in November, was set to provide high-speed internet to Ontario's rural northern regions. However, with tensions between the U.S. and Canada escalating, Ford declared, "We're ripping up the province's contract with Starlink. Ontario won't do business with those intent on tearing apart our economy."
When pressed on the cancellation's legality, Ford asserted, "We haven't handed over a dime yet. I won't back someone seeking to annihilate our province, our households, and take away their livelihoods. We're done with that. We never initiated this quarrel...but we will emerge victorious from this battle."
The U.S. and Canada are knee-deep in a trade war, with Donald Trump imposing a 25% tariff on Canadian goods as retaliation for Canada's tariffs on American products. The tariffs have affected numerous consumer goods, and in some instances, Canadian liquor stores have chosen to remove American beverages from their shelves, promoting "Buy Canadian Instead."
A list of affected items, primarily hailing from Red states, has been released by Canada, and the country is exploring options to impose further tariffs on Trump's allies. The Liberal Party, led by Prime Minister Justin Trudeau, is gearing up for a leadership election in March, with candidates such as Chrystia Freeland advocating for harsher retaliatory measures against the U.S., such as a 100% tariff on Teslas and American alcohol.
Freeland has argued that the tariffs should be aimed at those who support Trump, emphasizing the importance of being precise with retaliatory actions. She also suggested exploiting internal debates within the U.S. to mount a more effective defense.
Trump also imposed a 25% tariff on Mexico, but the move was temporarily paused following a call with Claudia Sheinbaum, Mexico City's mayor. The delay is due to Sheinbaum's agreement to send 10,000 troops to the border to aid in controlling the flow of drugs between the countries.
Sources:1. CBC News2. Global News3. Toronto Sun4. The Globe and Mail
- Despite Premier Doug Ford's decision to terminate the $100 million Starlink agreement, tech entrepreneur Elon Musk has yet to comment on the situation.
- With the future of the tech-focused Starlink deal in doubt, Ontario's rural regions may have to continue relying on outdated internet infrastructure for the time being.
- The cancellation of the contract has raised concerns about Canada's stance on technology and innovation, particularly in the context of the ongoing trade war with the U.S.
- In response to Premier Ford's actions, Prime Minister Justin Trudeau and his Liberal Party have not indicated whether they plan to tariff Tesla vehicles or American alcohol in retaliation for President Trump's tariffs.
