Key takeaways:

• Ontario cancels a C$100 million contract with Elon Musk’s Starlink over U.S. tariffs.
• Premier Doug Ford announced a ban on American companies in provincial contracts.
• Canadian Prime Minister Justin Trudeau plans to impose retaliatory tariffs on $155 billion worth of U.S. goods.

In a decisive measure reflecting growing tensions over international trade, Ontario Premier Doug Ford announced on Monday that the province would be ripping up a C$100 million contract with Elon Musk's Starlink satellite internet service. This action is part of Ontario’s response to the recent imposition of tariffs by U.S. President Donald Trump, who has announced a 25% tariff on virtually all Canadian imports, sparking outrage among Canadian officials.

“Ontario won’t do business with people hell-bent on destroying our economy,” Ford emphasized in a posting on X. He added that U.S.-based companies would now be excluded from provincial contracts, which could lead to significant financial losses for them—estimated to be in the tens of billions of dollars. This decision comes after a recent contract was signed last November, aimed at providing high-speed internet to remote communities across Ontario.

The cancellation is part of a broader strategy as Ontario, now under increasing pressure from the U.S.’s tariffs, prepares to retaliate with its own trade penalties. Ford stated, "We just aren't going to be using American companies,” reflecting his administration's commitment to supporting local businesses. A senior Canadian official expressed skepticism about avoiding the tariffs that are scheduled to begin, emphasizing the uncertain nature of Trump’s policies.

Prime Minister Trudeau immediately reacted to the tariffs, outlining plans for Canada to impose 25% tariffs on over C$155 billion of U.S. goods in retaliation. Other Canadian provinces are echoing Ford's sentiments, having announced plans to remove American alcohol from their liquor stores in protest against U.S. policies.

As financial markets reacted negatively to the news, there has been a significant public outcry in Canada, which historically has viewed the U.S. as a close ally. Reuters indicated that the tariffs, if prolonged, could risk sending the Canadian economy into recession.

The tensions are compounded by the political backdrop, as Ford called a snap election for later this month, asserting that Canada did not initiate this trade conflict but is prepared to respond robustly. Trump has indicated that the trade tariffs are necessary to ensure the protection of American workers and industries, while also placing blame on Mexico and Canada for what he views as unfair trade practices.

This ongoing feud takes place amid calls from various sectors in Canada for unity and resilience against external economic pressures, while The Hill reported that businesses are encouraged to prominently feature Canadian flags on their products to promote local purchases amid this growing conflict.

As this situation evolves, the ramifications will likely extend far beyond just economic impacts, intertwining with diplomatic relations as both nations navigate this contentious period.

For further details, visit the original reports from CBS News, The Guardian, and India Times.