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Canadian government cancels $100 million Starlink contract after Trump administration raises taxes; officials also plan 100% tariff on Tesla cars.
In a new round of trade retaliation following the imposition of tariffs by the US, the Canadian government has taken drastic measures against American companies, especially those linked to Elon Musk, such as Starlink. Thus, on March 5, Canada canceled the $100 million contract with Starlink after the Trump administration applied taxes on products from Canada and Mexico. Canada is also considering a 100% tariff on Tesla cars.
Canadian government cancels $100 million Starlink contract
Earlier this month, Ontario Premier Rob Ford announced that Canada had cancelled a $100 million contract with Starlink, a satellite company Elon Musk. Ford criticized the economic impacts of U.S. taxes. He also stressed that he will no longer award contracts to companies that support economic attacks against the province and the country.
Additionally, Rob noted that U.S.-based companies are now banned from bidding on provincial government contracts, which are worth as much as $30 billion a year.
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The Canadian government cancels a $100 million contract with Starlink and says other American companies will lose billions of dollars in revenue, according to the premier, highlighting that the responsibility for this loss falls on President Trump.
Meanwhile, former Deputy Prime Minister Chrystia Freeland, now a candidate for prime minister, has proposed a 100% tariff on Tesla cars sold in Canada.
According to Freeland, the goal now is to impact American companies that have ties to the White House. This is a direct response to the United States' economic aggression, and the Canadian government is calling on other countries affected by Trump's tariffs to join in.
Understand the discontent with Elon Musk
The decision, which saw the Canadian government cancel a $100 million Starlink contract, and Freeland proposing a 100% tariff on Tesla cars, is a reflection of growing discontent with Musk in Canada. A recent petition demanding Musk’s Canadian citizenship be revoked has already collected 230 signatures, accusing the billionaire of trying to undermine Canadian sovereignty.
The businessman, who holds Canadian citizenship through his mother, Maye Musk, responded irreverently, stating that Canada is not a real country, which further intensified the conflict against him and his companies, such as the 100% tariff on Tesla cars. In addition, with the end of the contract with Starlink, Canadian citizens who depend on the Starlink provided by the government will soon have their internet signal cut off.
Discontent with Musk is not limited to the Canadian government. Tesla sales are falling in Europe, especially in countries within the European Union, as well as in California, which was previously one of the company's largest markets. The wave of actions against the brand's vehicles, in some cases including acts of vandalism, is also growing.
US President backtracks
On Tuesday (11), US President Donald Trump said he does not see any recession in the country and that the economy will improve. Regarding Canada, Trump said he may consider 50% tariffs, also adding that he may give up on doubling tariffs on Canadian steel and aluminum.
He suggested a possible union between the two countries, stating that if Canada becomes its 51st state, there will be no tariffs. Trump has also indicated that he is focused on reducing tariffs on Canada at the moment.
Barbarity, now I really want to see the billionaire
Good thing!!!!
I'm really loving all of this!