Canadian Province Risks Lawsuit by Canceling Musk Contract Amid Tariff War: 'If They Come to Sue Us, So Be It'

As Canada contends with an emerging trade war with the US, the province of Ontario is asserting its opposition to President Donald Trump by scrapping a $100 million contract with Elon Musk's Starlink, Premier Doug Ford announced Tuesday.

"It's done, it's gone," Ford declared at a press conference, referencing a November deal with Starlink to provide rural high-speed internet. The move comes as part of Ontario's broader response to what Ford called "economic attacks" by the Trump administration, which implemented 25% tariffs on Canadian imports this week.

When asked about potential legal consequences for breaking the contract, Ford admitted he didn't yet have that information, but emphasized he would move forward with canceling the contract with Musk—who he described as Trump's "right-hand-man"—on "principle."

"If they come to sue us, so be it," Ford said. "We won't award contracts to people who enable and encourage economic attacks on our province and our country."

The province, which spends $30 billion annually on contracts, has frozen procurement and says it won't sign any new deals with US companies. Current contracts are under review.

Ford also announced a 25% surcharge on electricity exports to New York, Michigan, and Minnesota and suggested Ontario could restrict exports of high-grade nickel, a critical mineral used in US manufacturing.

The premier's defensive positions Ontario as a central player in the growing economic standoff between Canada and the US.

"We're standing up for Ontario, we're standing up for Canada, and we're willing to fight in court," Ford said.

Originally published on Latin Times