Ontario Halts Contracts with American Companies Amid Trade War with U.S.

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Ontario Halts Contracts with American Companies Amid Trade War with U.S.
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Ontario Premier Doug Ford has announced a halt to all contracts with American companies in response to the Trump administration's imposition of tariffs on Canadian goods. The move aims to protect the Ontario economy and pressure the U.S. to reverse its tariffs.

Ontario Premier Doug Ford announced on Monday that the province will halt all contracts with American companies until the United States reverses its newly imposed tariffs on Canadian goods. The decision comes in response to the Trump administration's implementation of a 10% tariff on Canadian exports, including oil, natural gas, and electricity, starting Tuesday.

Ford's office stated that Ontario will not do business with entities actively harming its economy, citing the $100 million contract with Elon Musk's Starlink, a deal struck in November to bring internet access to thousands of homes in remote and rural communities across the province. This contract will remain unaffected.Ford expressed his disappointment with the trade war, stating in a Fox News interview that he couldn't understand President Trump's actions towards Canada, a long-standing ally. He emphasized the need for collaboration and a strong partnership between the two nations, rather than conflict. According to the province, Ontario and its agencies annually allocate $20 billion to government procurement. Ford warned that the tariffs could result in inflation and interest rate hikes on both sides of the border, potentially costing 500,000 Ontario jobs. He also highlighted that Canadian companies would lose out on these contracts due to the trade dispute. While Prime Minister Justin Trudeau has vowed to retaliate with Canadian tariffs, including a 25% levy on American goods like alcohol and fruit, Ford maintains a hopeful stance, advocating for diplomacy and a resolution to the trade war.

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