Ontario has terminated its contract with Starlink and is banning government contracts in the Canadian province with companies based in the U.S. The Elon Musk satellite internet company is being targeted after President Donald Trump promised to add 25% tariffs to exports from Canada. Those start Tuesday with no signs of Trump or Canada backing down.
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The Starlink ban is a blow to the company and residents in rural areas of Ontario. The contract was worth $68.3 million and Ontario had promised to cover the installation and equipment fees tied to the rollout. Without this deal, residents in rural parts of the province have to make do with current internet options.
What This Means for Starlink and Canada
Starlink missing out on a contract in Canada is a bummer, but it’s unlikely to overly affect the company’s business. That’s due to the Musk company doing business with customers globally. While additional trade war actions could affect its business, it’s unclear if any other countries would specifically target it. Canada may have chosen to do so as Musk is closely tied to President Trump, leading his Department of Government Efficiency (DOGE).
While Canada is playing rough with President Trump, there are concerns this won’t play out well for the country. That includes estimates from economists that a trade war with the U.S. will send the Canadian economy into a recession. This could see it fall back to levels seen during the COVID-19 pandemic.
How to Invest in Starlink
Starlink isn’t publicly traded, meaning retail investors can’t hold a direct stake in it. Instead, they might consider investing in Tesla (TSLA), Musk’s only company on a public exchange. The analysts’ consensus for TSLA is Hold based on 12 Buy, 12 Hold, and nine Buy ratings. With that comes an average price target of $336.71, representing a potential 11.36% downside for TSLA stock.
