Canada's most populous province Ontario announced that it would impose a ban on U.S. firms submitting bids on government contracts worth tens of billions of dollars and canceled a deal with billionaire Elon Musk's Starlink, in response to President Donald Trump's tariffs.

"Ontario won't do business with people hellbent on destroying our economy," Ontario Premier Doug Ford said on X. "U.S.-based businesses will now lose out on tens of billions of dollars in new revenues. They only have President Trump to blame."

President Trump said he had spoken Monday to Prime Minister Justin Trudeau about the punishing tariffs he has levied on Canada, adding that they would talk again later in the day.

"Just spoke to Justin Trudeau. Will be speaking to him again at 3:00 P.M," Trump said on his Truth Social network while pushing his argument that the tariffs were about a "drug war" aimed at stopping the flow of fentanyl.

The Republican president also used his social media post to repeat his complaints that Canada has been uncooperative, despite decades of friendship and partnerships that range from World War II to the response to the 9/11 terrorist attacks on the United States.

"Canada doesn't even allow U.S. Banks to open or do business there," Trump posted. "What's that all about? Many such things, but it's also a DRUG WAR, and hundreds of thousands of people have died in the U.S. from drugs pouring through the Borders of Mexico and Canada."

Financial markets, businesses and consumers are bracing for the impact of the new tariffs that also include an import tax against China. Stock market indices were set for a modest selloff, suggesting some hope that the import taxes that could push up inflation and disrupt global trade and growth would be short-lived.

But the outlook reflected a deep uncertainty about a Republican president who has talked with adoration about tariffs, even saying the U.S. government made a mistake in 1913 by switching to income taxes as its primary revenue source. Trump said Sunday the tariffs would lift if Canada and Mexico did more to crack down on illegal immigration and fentanyl smuggling, though there are no clear benchmarks. Trump also said the U.S. can no longer run a trade imbalance with its two largest trade partners.

Mexico is facing a 25% tariff, while Canada would be charged 25% on its imports to the United States and 10% on its energy products. China is facing a 10% additional tariff due to its role in the making and selling of fentanyl, the Trump White House said.