The United States has imposed a 25% import tax on Canadian goods, effective Tuesday, escalating trade tensions between the neighboring countries. In response, Canadian Prime Minister Justin Trudeau announced plans to implement counter-tariffs. Adding to the unfolding economic dispute, Ontario Premier Doug Ford declared that American companies will be barred from provincial government contracts until the U.S. retracts the tariffs.
Ford's declaration includes terminating Ontario's C$100 million contract with Elon Musk's satellite internet company, Starlink. The Ontario government had previously partnered with Starlink to deliver high-speed satellite internet access to 15,000 underserved homes and businesses within the province. However, Ford has now targeted Starlink as part of his broader strategy against the tariffs.
"Canada didn't start this fight with the US, but you better believe we're ready to win it." – Doug Ford
The U.S. has also levied a 10% tariff on Canadian energy products, a lesser rate compared to other goods. President Donald Trump justified these tariffs as necessary measures to protect Americans from what he described as the "major threat of illegal aliens and deadly drugs," including fentanyl. He further alleged that Mexican gangs have established fentanyl labs in Canada, a claim disputed by Trudeau, who noted that less than 1% of fentanyl entering the U.S. originates from Canada.
In response to the U.S. actions, Ford stated that his government is prepared to impose C$30 billion in tariffs on American goods this week. If the situation does not improve in the following weeks, an additional C$125 billion will be placed, bringing the total to C$155 billion ($107 billion; £86 billion).
"Ontario won't do business with people hell-bent on destroying our economy." – Doug Ford
Canadian premiers are set to travel to Washington D.C. to lobby against the tariffs and will engage in discussions with U.S. state governors later this month. Meanwhile, Trump confirmed that discussions between the U.S. and Canada are scheduled to continue this afternoon.
"Canada has 'no choice but to hit back, and hit back hard'." – Doug Ford