The trade war between the United States and Canada has escalated, with Elon Musk and his company, Starlink, becoming unexpected casualties of the conflict. The dispute began when former President Donald Trump imposed significant tariffs on Canadian and Mexican imports, prompting a strong response from Canadian Prime Minister Justin Trudeau.
Trump’s tariffs, which included a 25% charge on all goods and a 10% levy on Canadian energy exports, were met with immediate retaliation. Trudeau announced a 25% tariff on $30 billion worth of U.S. products, targeting items ranging from paper and beverages to steel and automobiles. The move was widely supported by Canadian leaders, who viewed it as a necessary response to Trump’s aggressive trade policies.
The conflict took a surprising turn when Ontario Premier Doug Ford canceled a $100 million deal with Starlink, Musk’s satellite internet company. The agreement, which aimed to provide high-speed internet to rural Ontario, was terminated in protest of the U.S. tariffs. Ford stated, “We won’t work with those who harm our economy,” and imposed a ban on American companies bidding for provincial contracts.
Ford’s decision reflects growing frustration with Musk’s close ties to the Trump administration. As a vocal Trump supporter and head of the Department of Government Efficiency (DOGE), Musk has become a target for Canadian leaders seeking to retaliate against the tariffs. Critics in the U.S. have also raised concerns about Musk’s influence, questioning whether a private citizen should have such access to government operations.
Despite the heated exchanges, there are signs that the trade war may be de-escalating. Canada and Mexico have reportedly reached agreements with Trump to suspend the tariffs in exchange for stricter border controls. However, these measures are temporary, leaving the potential for future conflicts. With Trump’s unpredictable leadership, the situation remains uncertain.
