Ontario Strikes Back: Starlink Deal Canceled, U.S. Alcohol Banned, Energy Surcharge Proposed

Ontario has launched a series of retaliatory measures in response to U.S. tariffs imposed by President Donald Trump. Premier Doug Ford announced Tuesday that the province will cancel its $100-million deal with Starlink, ban American companies from $30 billion in procurement contracts, and remove U.S. alcohol from the Liquor Control Board of Ontario (LCBO) stores.

Ontario’s Response to U.S. Tariffs

Trump’s tariffs include a 25% levy on Canadian goods and a 10% charge on energy exports. In response, Ford announced several countermeasures targeting American businesses and products.

1. Procurement Ban: U.S. companies will no longer be eligible to bid on $30 billion in government contracts.
2. Starlink Deal Terminated: Ontario will sever its $100-million contract with Elon Musk’s SpaceX Starlink, which was meant to provide high-speed internet to rural and remote communities.
3. U.S. Alcohol Removed: The LCBO will stop purchasing and selling American alcoholic products. The board previously stocked 3,600 American products from 36 states, worth nearly $1 billion in sales annually.
4. Energy Surcharge: Ontario will introduce a 25% surcharge on electricity sent to 1.5 million American customers in states like New York, Michigan, and Minnesota. Ford also warned that if the tariffs persist into April, Ontario could cut off power exports entirely.
5. Critical Mineral Exports Under Threat: The province may surcharge or halt the export of key minerals vital to American industries.

Impact on Businesses and Consumers

The LCBO’s role as the province’s primary alcohol distributor means that not only its stores but also grocery stores, restaurants, and bars will no longer have access to U.S. alcohol. The board stated that Ontario-made and Canadian products will be available as alternatives.

Ontario’s auto and manufacturing sectors face uncertainty due to the tariffs. Ford warned that assembly lines could halt production within 10 days if supply chain issues persist.

Ford and Trudeau’s Stance

Doug Ford emphasized that Ontario will use every tool available to protect its economy and workers. He called the tariffs an economic attack and blamed Trump for forcing Ontario to act.

Prime Minister Justin Trudeau announced a federal response, including matching tariffs on $155 billion of U.S. goods. The Canadian government also plans to expand employment insurance benefits and provide direct business support.

Future Actions

Ford has expressed support for removing interprovincial trade barriers, expediting infrastructure and mineral extraction projects, and building pipelines to strengthen Canada’s economy. He urged Ontarians to buy local and support Canadian industries.

As the trade conflict escalates, both governments are preparing for economic disruptions. Businesses and consumers will likely feel the effects in the coming weeks. Ontario’s firm stance signals that it is ready for a prolonged trade dispute, prioritizing its economic independence over reliance on U.S. markets.

More…

• https://www.cbc.ca/news/canada/toronto/ford-us-tariffs-trump-ontario-retaliation-measures-1.7473968
• https://www.ctvnews.ca/toronto/article/here-is-a-full-list-of-retaliatory-actions-ontario-has-promised-to-take-amid-tariffs
• https://www.stalbertgazette.com/politics/ontario-rips-up-starlink-deal-plans-to-add-energy-surcharge-in-response-to-tariffs-10318716 
• https://www.overheretoronto.com/trump-defends-tariffs-in-congressional-address-straining-u-s-canada-relations