The Canadian province of Ontario, the economic heart of the country, has decided against banning US companies from public contracts following the announcement of a 30-day suspension of tariffs that the United States had threatened to impose.
Ontario’s Premier, Doug Ford, said tariffs that could have severely damaged his privince's economy had been avoided temporarily, giving time for negotiations and allowing tempers to cool. He announced that, with the suspension of tariffs by the United States, Ontario would also suspend its retaliatory measures.
Earlier in the day, Ford had announced that Ontario was banning US companies from public tenders. He had also announced the cancellation of a $100 million CAD (€66 million) contract with Starlink, the company controlled by billionaire Elon Musk, a strong ally of U.S. President Donald Trump.
Ford said Canada and Ontario still faced the threat of tariffs, whose impact was already being felt. He added that as long as the relationship with Canada's largest trading partner remained uncertain, many potential projects would be frozen and existing projects put at risk.
Donald Trump had announced on Saturday the imposition of 25% tariffs on all Canadian products starting Tuesday, except for hydrocarbons, which were to be taxed at 10%.
However, after two phone calls with outgoing Prime Minister Justin Trudeau, the U.S. President on Monday announced the suspension of the measure for 30 days.
