Ontario, the most populous province in Canada, declared on Monday a prohibition on U.S. companies from bidding on government contracts amounting to tens of billions of dollars.

This decision entails the cancellation of a $68 million deal with Elon Musk's Starlink, which was intended to deliver high-speed internet to 15,000 homes and businesses in remote northern Ontario.

The action is a response to U.S. President Donald Trump's announcement of a 25% tariff on nearly all Canadian imports, scheduled to take effect on Tuesday.

In retaliation, Canadian Prime Minister Justin Trudeau revealed a 25% tariff on $155 billion of U.S. goods, encompassing a range of food and clothing products.

Ontario Premier Doug Ford remarked, "Ontario will not conduct business with those intent on undermining our economy." The province usually allocates $30 billion each year for procurement and is planning a $200 billion investment to develop Ontario.

Moreover, Ontario's liquor stores have started to remove U.S. beer, wine, and spirits from their inventory.

Several other Canadian provinces, such as Quebec, Nova Scotia, and British Columbia, are implementing similar measures.

The scenario is evolving as both countries deal with the intensifying trade tensions.