Ontario rips up Starlink deal, plans to add energy surcharge in response to tariffs
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TORONTO — Ontario Premier Doug Ford confirmed Tuesday the province will ban American companies from procurement contracts and rip up a $100-million Starlink deal after U.S. President Donald Trump imposed tariffs on Canadian goods.
That comes after the Liquor Control Board of Ontario said it will stop buying and selling U.S. alcohol.
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Ford said he will soon impose a 25 per cent surcharge on electricity that the province sends to 1.5 million Americans in several different states, and has threatened to cut off power altogether if U.S. tariffs remain place into April.
He also threatened to surcharge or cut off critical mineral exports to the U.S. should the trade war linger.
“We also need to be ready to dig in for a long fight,” Ford said. “We need to be ready to escalate using every tool in our tool kit.”
Trump imposed tariffs of 25 per cent on Canadian goods with a lower 10 per cent levy on energy. The federal government has responded with a suite of retaliatory tariffs on U.S. goods.
The LCBO, under direction from Ford, will stop buying and selling American alcohol immediately.
It is the sole purchaser for all American alcohol across the province and imports $965 million worth of booze annually, with more than 3,600 American products from 36 states on its shelves.
The LCBO website is temporarily down while the products are being removed. American booze was still on the shelves in at least two downtown Toronto LCBO stores devoid of customers on Tuesday morning, although staff at one of them said the bottles would be removed later in the day.
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The LCBO is also the province’s main alcohol distributor, which means grocery and convenience stores, bars and restaurants and other retailers will no longer be able to buy U.S. alcohol.
“Our in-store teams can help customers find alternative products from our extensive selection of products from Ontario, Canada, and around the world,” the LCBO said in a statement.
The premier also said American companies will not be able to bid on the $30 billion worth of procurement contracts the province awards each year, or bid on contracts related to his $200-billion infrastructure plan to build highways, tunnels, transit, hospitals and jails.
“U.S.-based businesses will now lose out on tens of billions of dollars in revenues,” Ford said.
“They only have President Trump to blame.”
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Ford said the province will rip up the $100-million deal it signed with Elon Musk’s SpaceX last year to provide high-speed Starlink internet to northern Ontario, rural and remote First Nation communities.
“It’s done, it’s gone,” Ford said.
“We won’t award contracts to people who enable and encourage economic attacks on our province and our country.”
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