Trump drops blockade threat as US, Canada strike toll deal on $4.7bn Gordie Howe bridge, set for July 27 opening

The United States and Canada have resolved a months-long dispute over the Gordie Howe International Bridge, clearing the way for the 4.7-billion-dollar crossing between Detroit and Windsor, Ontario, to open on July 27. The announcement on Friday evening by the Canadian government caps a standoff that began in February when President Donald Trump threatened to block the bridge, citing what he called unfair Canadian trade practices.

The deal

Under the new arrangement, the US will receive 50 percent of toll revenues and hold a veto power over any toll increase of 10 percent or more, according to a person familiar with the matter cited by Reuters. The original 2012 agreement between Canada and Michigan had stipulated that toll revenue would be split only after Canada recouped its construction costs, a timeline projected at roughly 50 years. Canada financed the entire project through a government-owned corporation, and the bridge is jointly owned by Canada and the state of Michigan.

The original deal was unacceptable to me. The new deal is great and fair.

Trump, posting on his Truth Social platform on Saturday, claimed he had secured a "significantly better agreement" for the United States. The president had demanded in February that the US be given at least half ownership of the bridge.

The blockade

Trump's February threat to block the opening came hours after Matthew Moroun, the scion of the family that has owned the privately operated Ambassador Bridge since 1979, met in Washington with Commerce Secretary Howard Lutnick, The New York Times reported. Less than a month before that meeting, Moroun donated one million dollars to a super PAC supporting the president. Trump's stated objections included Canada's refusal to offer certain American alcoholic beverages in its stores, Canadian dairy tariffs, and Ottawa's renewed trade ties with China. He also falsely claimed that no American workers or steel had been used in the bridge's construction. A ribbon-cutting ceremony scheduled for early June was called off after invitations had already been sent out.

The toll arrangement worked out by Canada and Michigan in 2012 was the sticking point.

US Ambassador to Canada Pete Hoekstra indicated that the Trump administration was upset over the toll arrangement, according to the Times.

The bridge

The 1.5-mile cable-stayed structure has already reshaped the skylines of both border cities, between which roughly 300 million dollars in trade flows each day. The bridge adds six lanes of traffic to a crossing that currently relies on a privately operated bridge and a tunnel that cannot accommodate trucks. Construction began in 2018 and was delayed by the pandemic. The bridge is named after the late Canadian hockey player Gordie Howe, who spent most of his career with the Detroit Red Wings.

Reaction

Canadian Housing and Infrastructure Minister Gregor Robertson praised the agreement, saying the bridge "will create new opportunities, strengthen our economy, and bring economic benefits" for both nations. Michigan Governor Gretchen Whitmer called the bridge a "great deal for our state" and said she was "proud to have fought for its opening." Ahead of the announcement, Michigan GOP Senate candidate Mike Rogers touted details that Commerce Secretary Lutnick had shared with him, including that the US would receive "half the revenue" and "joint determination of what the tolls are." Prime Minister Mark Carney has championed the bridge as a bulwark against the economic damage caused by Trump's trade war with Canada, which has included drastic tariff increases and repeated threats of annexation.