Ontario has officially terminated its $100-million agreement with Elon Musk’s satellite internet company Starlink, following Premier Doug Ford’s threat in response to proposed US tariffs on Canadian goods. The contract with Starlink, part of Musk’s SpaceX, was initially made in November 2024 to provide high-speed internet to 15,000 rural and remote homes and businesses by June 2025. Ontario paid an undisclosed break fee to Starlink, fulfilling Ford’s promise to cancel the deal after the US imposed tariffs in March.
A spokesperson for Ontario’s government confirmed the cancellation, stating they are seeking alternative solutions for long-term, stable internet access in the province. The cost of the break fee was not disclosed.
During the first tariff wave in March, Ford emphasized that contracts wouldn’t be awarded to those supporting economic attacks on Canada. While Musk was closely associated with the Trump administration as the head of the Department of Government Efficiency, their relationship has since deteriorated publicly.
A senior government source indicated successful negotiations with SpaceX on the break fee, which was significantly lower than the contract’s value. The government also considered legislation to terminate the contract, which would have protected Ontario from legal actions by SpaceX but risked the company withdrawing from the province.
Canada has mostly avoided severe tariff impacts, but Trump recently threatened a 35-percent tariff on non-exempt Canadian goods if a trade agreement is not finalized by August 1.