ECONOMY & WORK
MONEY 101
NEWS
PERSONAL FINANCE
NET WORTH
About Us Contact Us Privacy Policy Terms of Use DMCA Opt-out of personalized ads
© Copyright 2023 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.
MARKETREALIST.COM / NEWS

Trump uses a bridge as leverage until US is 'compensated' by Canada for 'everything they've given'

Economists argue that a disruption in the supply chain could cause a pandemic-like effect in automotive industry
PUBLISHED 1 HOUR AGO
U.S President Donald Trump at the Oval Office (Cover image Source: Getty Images| Photo by Photo by Kevin Dietsch)
U.S President Donald Trump at the Oval Office (Cover image Source: Getty Images| Photo by Photo by Kevin Dietsch)

U.S. President Donald Trump has issued fresh threats to block the opening of the Gordie Howe International Bridge that would connect Windsor, Ontario, and Detroit, Michigan, marking an important border crossing between America and Canada. While the President demands proper compensation, "Fairness and Respect" for everything the country has given to its neighbor, economists warn that any delay in the opening of the bridge would hurt the 'Motor City' economically, as the crossing is important for commercial trucks.  

U.S. President Donald Trump (R) meets with Canadian Prime Minister Mark Carney in the Oval Office at the White House  (Image source: Getty Images/Photo by Anna Moneymaker)
U.S. President Donald Trump (R) meets with Canadian Prime Minister Mark Carney in the Oval Office at the White House (Image source: Getty Images/Photo by Anna Moneymaker)

In a 299-word post on his social media platform Truth Social, Trump complained that Canada has treated the U.S. "very unfairly for decades," and complained that the bridge was built "with virtually no U.S. content." He also criticized Prime Minister Mark Carney over "wanting to make a trade deal with China," and demanded that the U.S. should own at least "half of this asset." However, in typical fashion, the President did not provide any explanation on how he would block the opening, but he stated that negotiations would begin immediately. 

The Gordie Howe Bridge has been entirely funded by Canada's federal government, but the $6.4 billion bridge is under the public joint ownership of Canada and the state of Michigan. The Windsor-Detroit Bridge Authority is overseeing the project, and major construction is complete. Only the final testing is remaining, and expected to open later this year, the bridge will provide another route across the busy international border area between Detroit and Ontario, especially for commercial trucks. “You have auto parts being manufactured on one side of the border and then shipped to the other side of the border to be finished in the manufacturing process,” Chris Douglas, professor of economics at the University of Michigan-Flint, told WNEM5. He added that the two economies are intertwined and a prolonged delay in opening the bridge could have a major impact.

Representative image of trucks crossing the Ambassador Bridge between Detroit, Michigan and Windsor, Canada (Image source: Getty Images/Photo by Bill Pugliano)
Representative image of trucks crossing the Ambassador Bridge between Detroit, Michigan and Windsor, Canada (Image source: Getty Images/Photo by Bill Pugliano)

Douglas added that if the supply chains are disrupted, consumers will be hurt. “If those supply chains get disrupted, then you see what we saw during the pandemic, where there’s random shortages,” he explained. “You need to buy a new car. You can’t find a new car because the part to Canada can’t be shipped to the US. You see prices go up because of the shortage of supplies, which pushes prices up. So consumers just get a headache in terms of, I want to buy something. It’s either got way up in price, or it’s just a shortage," Douglas further explained.  

Detroit, Michigan - Ambassador Bridge - stock photo
The Detroit skyline as seen from across the Detroit River, in Windsor, Ontario, Canada. The two cities are linked by the Ambassador Bridge. Credit: Steven_Kriemadis
Detroit, Michigan - Ambassador Bridge - stock photo The Detroit skyline as seen from across the Detroit River, in Windsor, Ontario, Canada. The two cities are linked by the Ambassador Bridge. Credit: Steven_Kriemadis

The economist added that there could be long-term implications as well if President Trump fails to make an agreement. “The longer-term issue is, well, if truck traffic increases, the passenger car traffic increases, maybe that will outgrow the Ambassador Bridge,” said Douglas, adding that many Americans who live in Southwest Michigan work in Canada and vice versa, so if the traffic is disrupted, those workers' lives will be disrupted as well. He cautioned that the issue will probably end up in court if Trump persists in keeping the bridge shut. 

More on Market Realist:

Trump’s 'One Big Beautiful Bill' could have a major impact on higher education this year 

Trump's tariffs are hurting American consumers more than exporters— here's how much they're paying

Top economist warns 'crisis will get worse' if Donald Trump follows through on his threat

MORE ON MARKET REALIST
The December retail report and the bond market have undermined expectations of strong growth.
7 minutes ago
Citing Trump's four engines of growth, Peter Navarro says non-inflationary growth is coming.
9 minutes ago
Economists argue that a disruption in the supply chain could cause a pandemic-like effect in automotive industry
1 hour ago
CEO Scott Boatwright had to clarify his alleged focus on the $100K club customers after backlash
4 hours ago
Steve Rattner argues that the tariffs have hurt the U.S. but not slowed down the Chinese economy.
6 hours ago
While the White House is parading the hefty tax returns, the political payoff may be disappointing
1 day ago
Governor Mike DeWine cautioned that the sales tax could go up to 20% to make up for the lost revenue
1 day ago
Trump reportedly muzzled Consumer Financial Protection Bureau, costing Americans billions in relief
1 day ago
Harvey issued a stern warning to the contestants, once the burn kicked in.
1 day ago
Minute Maid’s existing frozen concentrate range comes in many exciting flavors such as orange juice, lemonade, and more.
4 days ago
The room burst into laughter as soon as the prize was revealed.
4 days ago
The Treasury Department has also doubled the standard deduction, impacting 90% of taxpayers.
4 days ago
Harvey couldn't believe some of the answers that the Peele family came up with.
4 days ago
Even host Ryan Seacrest admitted the puzzle was tricky to solve with the given letters.
4 days ago
The bill in Oklahoma will reportedly affect thousands, including children entitled to the benefits.
5 days ago
The guest who thought her gift would be worth $3,500, was left almost shaking in the end.
5 days ago
The 30-second spot pays homage to the open seating policy while celebrating its new Assigned seating
5 days ago
President Trump also spoke about the reason why he chose Kevin Warsh as the next Fed chair nominee.
6 days ago
Taxpayers in Texas, Louisiana, or Mississippi who paid self-employment tax can get their money back.
7 days ago