Elon Musk's Starlink seems to have ended up with the short end of the stick amidst President Donald Trump's tariff fiasco as it has been reported that government entities in Canada, which were once Starlink clients, are looking to divest.
For some, their contracts with Starlink are set to expire soon, but others are outright canceling their deals with Musk's company.
Canada is one of the countries that have been slapped with tariffs by Trump.
Canada Is Divesting Starlink Subsidies, Contracts
According to the Financial Times, one of the long-time clients of Starlink, Quebec, said that it will no longer renew its contract with the company when it expires this June.
Quebec has already spent $130 million on its operations with Starlink to allow its citizens to avail of a discounted satellite internet service from the company for over three years now.
On the other hand, Ontario Premier Doug Ford recently pulled out of its contract with Starlink worth $100 million.
Yukon Premier Ranj Pillai also claimed that he is canceling Starlink contracts as well.
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According to CNET, the Public Interest Advocacy Centre's Executive Director, Geoff White, claimed that as long as Musk is "aiding and abetting" President Trump, they would like to avoid doing business and receiving service from Starlink. Furthermore, White called Musk a "threat" to their sovereignty.
Despite Canada's divestment and boycott of Musk and Starlink, his satellite internet business is still gaining traction in the US, especially for government contracts and rural broadband subsidies.
Elon Musk's Starlink Expansion
Despite the shaky status of Starlink's partnerships and relationships with foreign nations and companies, Elon Musk is seeing a significant development in the US for its satellite internet service.
Recently SpaceX was invited by the Federal Aviation Administration (FAA) to help them fix their air traffic control system and operations.
Apart from the FAA, Starlink has also caught the attention of the Federal Communications Commission (FCC) as its preferred network service provider for rural areas, with the company set to receive a massive contract, per reports.
That being said, it is known that during the Biden administration, Starlink tried and tried again to secure an FCC rural subsidies contract but was rejected multiple times.
