Donald Trump’s threat to block a new bridge between Windsor and Detroit would hurt American businesses and consumers just as much as it would harm Canada, trade experts and business groups warn.
In a post on his Truth Social network Monday, the U.S. president threatened not to let the new Gordie Howe International Bridge open later this year, saying the U.S. should first be compensated.
“They own both the Canada and the United States side and, of course, built it with virtually no U.S. content. … Now, the Canadian Government expects me, as President of the United States, to PERMIT them to just “take advantage of America!” What does the United States of America get — Absolutely NOTHING!,” said Trump.
Trump said the U.S. is entitled to at least 50 per cent ownership in the bridge, which had been scheduled to open in July, and was planned as an alternative to the heavily-used Ambassador Bridge, which is privately owned.
Trump also took a shot at Canada’s supply managed dairy market, and the fact several Canadian provinces have pulled U.S. alcohol from store shelves.
“The Tariffs Canada charges us for our Dairy products have, for many years, been unacceptable, putting our Farmers at great financial risk,” wrote Trump, who also issued a bizarre warning to Prime Minister Mark Carney not to sign a trade deal with China.
“The first thing China will do is terminate ALL Ice Hockey being played in Canada, and permanently eliminate The Stanley Cup,” Trump posted.
The new bridge has cost $6.4 billion to build, a cost which has been borne entirely by the Canadian federal government after some foot-dragging by the U.S. side, said Canada’s top supply chain expert Fraser Johnson.
“This hurts everyone,” said Johnson, a professor at Western University’s Ivey Business School. “It hurts American businesses shipping to Canada. It hurts their Canadian customers. It hurts Canadian businesses shipping to the U.S., and it hurts their customers, too.”
Johnson estimated that roughly $474 million in goods cross the Ambassador Bridge each day, with up to 80 per cent of that from the highly integrated automotive industry. That’s roughly 30 per cent of all Canada-U.S. goods trade, Johnson said.
The Gordie Howe Bridge, said Johnson, was widely expected to be a more modern, efficient alternative to the Ambassador Bridge, which was first opened in 1929.
“It will be vital to the automotive sector. And we’re the ones that footed the capital,” said Johnson.
That point was also driven home by Ontario Chamber of Commerce CEO Daniel Tisch.
“He’s obviously had another bad day, but with hope tomorrow his advisors will tell him the bridge is a binational asset funded by Canada,” Tisch said in a written statement. “We urge him to bring trade concerns to the CUSMA talks, not to threaten the people and businesses of Michigan. On both sides of the border, businesses want more bridges, and fewer barriers.”
The Canada-U.S.-Mexico agreement on trade is being reviewed this year, and Trump has frequently and publicly suggested the U.S. doesn’t need it, a position scoffed at by most economists.
The head of Canada’s Automotive Parts Manufacturers Association played down the impact of Trump’s threat, pointing out that the new bridge has yet to open, so any harm is strictly theoretical at this point, especially given Trump’s penchant for swift and dramatic policy changes.
“It’s a Monday afternoon social media rant in February,” said APMA CEO Flavio Volpe. “I’m not sure about auto sector demand for that bridge access when it opens in July. Hopefully other things will happen tomorrow to shift his mood.”
Candace Laing, president and CEO of the Canadian Chamber of Commerce said in a statement that “blocking or barricading bridges is a self-defeating move.” Laing said the Trump administration was right in 2017 in its joint statement that endorsed the bridge as a priority project. She added that modern border infrastructure strengthens shared economic security. “Through decades of collaboration, Canada and the United States build things together, create jobs together and compete globally together,” said Laing. “The path forward isn’t deconstructing established trade corridors, it’s actually building bridges.”
Stacey LaRouche, press secretary to Governor of Michigan Gretchen Whitmer, said the Gordie Howe International Bridge is “all about jobs.”
“It’s good for Michigan workers and it’s good for Michigan’s auto industry,” said LaRouche, noting that the construction of the bridge was financed by Canada and that it was built by union construction workers from both sides of the border. “This project has been a tremendous example of bipartisan and international co-operation.”
“It’s going to open one way or another, and the governor looks forward to attending the ribbon cutting.”
The local chamber of commerce in Detroit also said the new bridge is vital to the region’s future.
The international bridge is the most consequential infrastructure project in the state and region of this generation. It will support economic growth and improve border security, and any effort to block this project would have tremendous consequences for the region, state, and country,” said Sandy K. Baruah, CEO of the Detroit Regional Chamber of Commerce.
With files from The Canadian Press
