Canada Hits Back at Trump’s Tariffs by Cancelling More Starlink Contracts

Trump’s trade war could spell more trouble for SpaceX’s Starlink.

On Thursday, Canada’s Yukon territory announced it will review “government Starlink accounts and cancel accounts that are not required for business continuity or emergency response.”

Yukon’s government is hitting back at President Trump’s auto tariffs, which took effect yesterday and target cars imported from Canada. Canadian Prime Minister Mark Carney also announced retaliatory tariffs against the US, but Yukon’s government has gone out of its way to target a key Trump ally —Elon Musk, CEO of SpaceX and Tesla. 

Yukon is also ending rebates “for all Tesla products offered through the Good Energy program,” which promotes the purchase of electric vehicles.

The Yukon government, which serves a population of over 46,000 people, also plans to shift its digital communications away from X, which Musk owns. “We are continuing to explore additional responses that can come into force if the Trump Administration continues to threaten Canada’s economy or sovereignty,” the government adds. 

“Tariffs imposed by the US Administration continue to violate our trade agreements, make life more expensive for Americans and threaten the generations-long partnership between our two countries,” says Yukon Premier Ranj Pillai.

Last month, the Ontario province in Canada terminated a $100 million CAD contract with Starlink in response to Trump’s tariffs. The ongoing trade war between the two countries has also sparked calls among Canadians for a boycott of Starlink, causing some independent installers to face online insults and intimidation. 

Still, the country can’t quit Starlink entirely. The satellite internet service outperforms competitors by providing high-speed, low-latency internet to remote and rural locations. In Thursday’s announcement, the Yukon government even conceded that local residents may still “see continued use of Starlink by the Yukon government in situations necessary for emergency response or business continuity.”

Meanwhile, Quebec’s government this week awarded a contract to Starlink to use the satellite internet service for remote courthouses. “There is currently no satisfactory alternative equivalent to Starlink technology,” the Quebec Justice Department reportedly said. 

The Yukon government’s plan to retaliate against the US is also facing some pushback. “This is so stupid. You just spent how many tax dollars on all those Starlinks just to stop using them?!” wrote one user on Facebook.

About Michael Kan

Senior Reporter

I’ve been working as a journalist for over 15 years—I got my start as a schools and cities reporter in Kansas City and joined PCMag in 2017.

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