Ontario Escalates Countermeasures Amid Intensifying U.S.-Canada Trade Dispute
Toronto — In a bold response to escalating trade tensions initiated by U.S. President Donald Trump’s recent imposition of 25% tariffs on Canadian imports, Ontario Premier Doug Ford announced a series of retaliatory measures aimed at safeguarding the province’s economic interests.
Premier Ford declared the immediate termination of Ontario’s $100 million contract with Elon Musk’s Starlink, a project intended to enhance satellite internet services in Northern Ontario.
Additionally, he ordered the removal of U.S.-produced alcohol from the Liquor Control Board of Ontario (LCBO) outlets and barred American companies from participating in provincial government procurement processes, which encompass approximately $30 billion in goods and services annually.
Canada and Ontario didn’t start this trade war with President Trump, but Team Canada is ready to win it.
As a first step in our response, Ontario will rip up our contract with Starlink, take U.S. alcohol off LCBO’s shelves and ban U.S. companies from government procurements. pic.twitter.com/ppabqSVjjR
— Doug Ford (@fordnation) March 4, 2025
The Premier also hinted at potential legislation mandating retailers to display signage indicating Canadian-made products, aiming to encourage consumers to support local goods. He urged retailers to comply voluntarily.
Beyond these measures, Ford has threatened to disrupt the supply of critical resources to the United States. This includes halting electricity exports that power approximately 1.5 million American homes and industries in states such as New York, Michigan, and Minnesota, as well as suspending shipments of essential minerals like nickel, vital for various manufacturing sectors.
These developments come on the heels of Prime Minister Justin Trudeau’s announcement of a 25% tariff on C$30 billion worth of U.S. goods, with the possibility of extending tariffs to another C$125 billion if the U.S. tariffs persist. Trudeau condemned Trump’s actions, stating that Canada would not become the 51st state and emphasizing the country’s resilience and unity against external pressures.
As the trade dispute intensifies, the potential repercussions include significant job losses and increased inflation on both sides of the border. The situation remains fluid, with both nations poised for further economic confrontations in the coming weeks.