The trade war between the United States and Canada has taken a dramatic turn, with Elon Musk and his satellite company, Starlink, finding themselves at the center of the dispute. The conflict began when former President Donald Trump imposed hefty tariffs on Canadian and Mexican imports, a move that triggered immediate retaliation from Canadian Prime Minister Justin Trudeau.
Trump’s tariffs, which included a 25% charge on all imported goods and a 10% levy on Canadian energy exports, were met with swift action from Canada. Trudeau announced a 25% tariff on $30 billion worth of U.S. goods, targeting a wide range of products from paper and beverages to steel and automobiles. The decision received bipartisan support in Canada, with leaders across the political spectrum agreeing that a strong response was necessary.
The situation took an unexpected twist when Ontario Premier Doug Ford canceled a $100 million deal with Starlink, Musk’s satellite internet company. The agreement, which aimed to bring high-speed internet to rural Ontario, was scrapped in protest of the U.S. tariffs. Ford declared, “Ontario won’t do business with those who threaten our economy,” and went a step further by banning American companies from bidding on provincial contracts.
Ford’s actions highlight Musk’s deep ties to the Trump administration. As a prominent Trump supporter and head of the Department of Government Efficiency (DOGE), Musk has become a symbol of U.S. policies that Canadian leaders are pushing back against. Critics in the U.S. have also voiced concerns about Musk’s influence, arguing that a private citizen should not have such access to government operations.
While tensions remain high, there are indications that the trade war may be easing. Canada and Mexico have reportedly struck deals with Trump to pause the tariffs in exchange for enhanced border security measures. However, these agreements are temporary, leaving the door open for future conflicts. With Trump’s unpredictable approach to trade, the situation remains fluid and uncertain.
