The most populous province in Canada, Ontario, said Monday that it was cancelling a 100 million Canadian dollar deal with Elon Musk's Starlink and prohibiting US corporations from provincial contracts in response to US President Donald Trump's tariff announcements on Canada.

Starting Tuesday, February 1, Trump announced that the U.S. will impose a 25% tariff on almost all imports from Canada, except for oil, which will have a 10% tariff. If these tariffs continue for a long time, Canada’s economy could fall into a recession. One of the most conservative premiers on the subject of reprisals, Ontario Premier Doug Ford, declared that the government will not do business with "people hellbent on destroying our economy." Additionally, he claimed that Trump will now cost US companies tens of billions of dollars. "Starting today and until US tariffs are removed, Ontario is banning American companies from provincial contracts. Every year, the Ontario government and its agencies spend USD 30 billion on procurement, alongside our USD 200 billion plan to build Ontario," Ford tweeted.

"US-based businesses will now lose out on tens of billions of dollars in new revenues. They only have President Trump to blame. We're going one step further. We'll be ripping up the province's contract with Starlink," he said. In a deal signed last November, Ontario agreed with Starlink to bring high-speed internet to 15,000 homes and businesses in remote areas.

Ford said, "Ontario won't do business with people hellbent on destroying our economy. Canada didn't start this fight with the US, but you better believe we're ready to win it." Former U.S. President Donald Trump introduced new tariffs, placing a 25% tax on goods from Mexico and Canada and a 10% tax on imports from China. This decision, which could impact over $2.1 trillion in trade each year, raises concerns about a possible trade war. Trump justified the tariffs by blaming Canada and Mexico for illegal drug trafficking and immigration into the U.S.

In response, Canadian Prime Minister Justin Trudeau announced that Canada would impose its own 25% tariffs on $106.5 billion worth of U.S. goods. He acknowledged that the coming weeks would be tough for Canadians but emphasised that Americans would also face difficulties due to Trump's decision. Trump mentioned on Truth Social that he had a conversation with Trudeau regarding the potential of a major trade war between the world’s two largest trading partners. They also talked about drug trafficking at the border. Trump added that he would speak to Trudeau again after 3 pm (ET). Trudeau's office did not respond when asked about the outcome of the call. He is scheduled to address a special advisory council on US-Canada relations later on Monday.

In a related update, Mexican President Claudia Sheinbaum shared on Monday that the United States has decided to delay the implementation of President Donald Trump's tariffs on Mexican goods for one month. Sheinbaum mentioned that this decision followed a "very good conversation" with the Republican leader. In a social media post, Sheinbaum announced that following her conversation with Trump, Mexico would send 10,000 National Guard soldiers to its northern border right away. Their main goal will be to stop the illegal drug flow into the U.S., especially fentanyl.