OTTAWA, Feb 4, 2025 (BSS/AFP) - Ontario, Canada's economic engine, canceled plans Monday to ban American companies from bidding on the province's lucrative government contracts, after the United States paused levying tariffs on Canadian goods.

"We have temporarily averted tariffs that would have severely damaged our economy, giving time for more negotiation and time for cooler heads to prevail," Ontario Premier Doug Ford wrote on X.

"With the U.S. pausing tariffs, Ontario will also pause our retaliatory measures," Ford said.

In the morning, Ford announced a ban on US companies bidding on Canadian contracts, which are worth tens of billions of dollars, and also said he was dumping a deal with Elon Musk's Starlink worth Can$100 million (US$68 million).

"Make no mistake, Canada and Ontario continue to stare down the threat of tariffs," Ford said.

"So long as our trading relationship with our largest trading partner is up in the air, we will continue to see many potential projects frozen and projects that were already under way put at risk," he said.

Trump on Saturday announced 25 percent tariffs on all Canadian products starting Tuesday except energy exports, which would be taxed at 10 percent.

After two calls with Prime Minister Justin Trudeau on Monday, Trump said he would delay the start of tariffs for 30 days.