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Ontario Bans New Contracts with U.S. Companies: What It Means for the Province

Writer's picture: Adam BriggsAdam Briggs

Updated: Feb 4

Ontario Premier Doug Ford has announced that the province will no longer award new government contracts to American companies, citing this decision as a response to recent U.S. trade policies. However, the ban applies only to new contracts, meaning that existing agreements will not be affected. Ford stated that the policy aims to protect Ontario businesses and ensure taxpayer money stays within the province (New York Post, 2025).


Starlink Contract Cancellation and Northern Ontario

One of the most immediate effects of this decision is the cancellation of a $100 million contract with Elon Musk’s Starlink, which was set to provide high-speed internet to remote communities in Northern Ontario. Many residents and businesses in the region had anticipated that Starlink’s satellite service would help close the digital divide in rural and remote areas (Reuters, 2025).


Ford emphasized that the province will seek Canadian alternatives to improve broadband access but did not provide specific details on replacement plans. Some Northern Ontario officials have raised concerns about potential delays in addressing long-standing connectivity issues (Associated Press, 2025).


Province-Wide Implications

The ban has broad implications for various industries across Ontario, including construction, transportation, and technology, where American companies have historically played a role. While the move could create new opportunities for Canadian firms, some experts warn that reduced competition may lead to higher costs for taxpayers (New York Post, 2025).


The Ontario government has reassured businesses that it will work to support domestic industries and encourage investment in local suppliers. However, some municipalities and industries that rely on U.S. companies are calling for clear transition plans to avoid disruptions to major projects (Associated Press, 2025).


What’s Next?

The long-term impact of this decision remains uncertain. While Canadian businesses may benefit, concerns persist about potential price increases and project delays. The Ontario government is expected to provide further details on how it plans to replace American suppliers for key infrastructure and service contracts (Reuters, 2025).


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