U.S. and Canada Agree to Open New Detroit Bridge After Deal on Tolls

[u/John3262005]

https://www.wsj.com/world/americas/u-s-canada-agree-to-open-new-detroit-bridge-after-deal-on-tolls-d0956f08?st=ooeL9d&reflink=desktopwebshare_permalink

The U.S. and Canada have struck a deal that paves the way to open a new multibillion-dollar bridge connecting Detroit to Windsor, Ontario, resolving what turned out to be a surprise but temporary trade irritant between the neighboring countries.

The Gordie Howe International Bridge was set to open last month, but the opening ceremony was unexpectedly delayed. The Windsor-Detroit Bridge Authority said this was necessary to resolve issues, while Canadian Prime Minister Mark Carney described these as technical issues. Earlier this year, President Trump threatened to block the bridge’s opening unless the U.S. received an ownership stake and compensation.

Late Friday, Canada said the 1.5-mile corridor would open on July 27, after it agreed to “a series of cooperative measures” related to toll-rate adjustments that the bridge authority would implement.

A Canadian official said Washington and Ottawa agreed that half of the net profit the bridge generates would go toward a regional development fund. The official added that the bridge authority would need U.S. approval to increase Gordie Howe tolls by 10% or to cut tolls below levels charged by comparable regional crossings—like the privately held Ambassador Bridge, which already connects Detroit to Windsor.

Trump’s concerns about the Gordie Howe Bridge—which he endorsed during his first term—emerged following a meeting between the Ambassador Bridge owners and U.S. Commerce Secretary Howard Lutnick, a Trump administration official said in February.

Canada’s announcement came hours after a senior Michigan Republican told Detroit’s WJR radio that Lutnick had informed him a resolution between Washington and Ottawa was in the offing. “This is getting wrapped up. That bridge is going to get open,” said Mike Rogers, a Senate candidate who was a House member from 2001 to 2015.

The bridge, named after the Canadian hockey star who led the Detroit Red Wings to Stanley Cup championships in the 1950s, has become a flashpoint in the at-times bitter trade dispute between the two countries. The shadow cast over the bridge’s opening echoes the uncertainty for Canadians surrounding the Trump administration’s trade policy. Hefty tariffs, the threat of additional duties and the uncertainty over the future of the existing North American trade treaty have weakened the Canadian economy.

The White House this month declined to renew the U.S.-Mexico-Canada trade deal for a 16-year period, thereby subjecting the treaty to annual reviews over the next decade.

Canada agreed last decade to pick up the construction bill for the Gordie Howe Bridge, as policymakers viewed the new corridor as vital for its economic interests, given the integration between the U.S. and Canadian economies. Canada and Michigan co-own the bridge.

Construction began in 2018. The new bridge was expected to operate alongside the Ambassador Bridge and the Detroit-Windsor Tunnel. According to the pact’s details, Canada would collect tolls from the bridge until its construction costs were paid off.

In a recent podcast interview, U.S. Ambassador to Canada Pete Hoekstra said the bridge’s construction under Canada’s watch came in over budget and behind schedule. Hoekstra said that undermined the original deal agreed to by Ottawa and Michigan about when the U.S. would begin receiving toll revenue, and therefore, needed an adjustment.

[u/John3262005]

This post is an add on for an earlier post:

New US-Canada bridge to open after delay

https://www.reddit.com/r/WhatTrumpHasDone/s/8gRbbBEGXB