US, Canada reach toll deal to open Gordie Howe bridge July 27

The Gordie Howe bridge will open July 27 after the US and Canada agreed to split toll revenue, ending a dispute over the $4.7 billion crossing.

The US and Canada reached a toll-revenue-sharing deal to open the Gordie Howe International Bridge on July 27, ending a dispute that delayed the $4.7 billion crossing and threatened to deepen bilateral trade tensions.

"Canada and the US have agreed on a series of cooperative measures focused on toll governance and transparency," the Canadian government said in a statement Friday, confirming the July 27 opening date.

Under the agreement, the US will receive 50 percent of the bridge's net toll revenue and gain veto power over any toll increase of 10 percent or more above current rates, according to a person familiar with the deal. The bridge authority will also need US approval to cut tolls below levels charged by comparable regional crossings such as the privately held Ambassador Bridge, which carried $126 billion in commercial truck trade in 2023.

The resolution removes a surprise trade irritant that emerged in February when President Donald Trump threatened to block the bridge unless the US received an ownership stake. The 1.5-mile span, financed entirely by Canada since construction began in 2018, is expected to cut crossing times by 20 minutes and save truckers an estimated $2.3 billion over three decades, according to a University of Windsor study.

The deal was negotiated by US Commerce Secretary Howard Lutnick and Canada's minister in charge of US trade, Dominic LeBlanc, after the original June opening was canceled at the last minute. Trump said on Truth Social on Saturday that he had secured a "much better deal" for the US, calling the original terms "unacceptable."

The bridge has become a flashpoint in the broader US-Canada trade relationship, which has deteriorated under Trump's second term. The White House this month declined to renew the US-Mexico-Canada trade agreement for a 16-year period, instead subjecting the treaty to annual reviews over the next decade — a move that introduces recurring uncertainty for the roughly $126 billion in annual commercial trade flowing through the Detroit-Windsor corridor.

Michigan Governor Gretchen Whitmer, a Democrat, welcomed the opening, saying the bridge "will speed up auto production, lower costs, ease traffic, strengthen agriculture, and give people on both sides of the border better-paying jobs." The bridge is co-owned by Canada and Michigan.

The last time a major US-Canada border crossing faced a political standoff was during the 2022 Ambassador Bridge blockade by truckers protesting vaccine mandates, which disrupted auto supply chains for weeks and cost the industry an estimated $300 million per day. The Gordie Howe bridge is designed to provide redundancy: its six lanes and dedicated truck capacity are expected to handle about 8,000 commercial vehicles daily, relieving pressure on the aging Ambassador Bridge.

The toll dispute also highlighted the influence of the Ambassador Bridge's owner, Matthew Moroun, who donated $1 million to a Trump-aligned political action committee in February and met with Lutnick that same month. The Moroun family had campaigned for years to block the new public bridge.

This article is for informational purposes only and does not constitute investment advice.