US-Canada bridge threatened by Trump to open on July 27

TORONTO – The US and Canada will open the delayed Gordie Howe International Bridge connecting Detroit with Windsor, Ontario, on July 27, after the Canadian government agreed to give the US a share of net toll profits, according to officials familiar with the matter.

The deal ends a tense stand-off between the two trading partners.

Canada paid for construction of the C$6.4 billion (S$5.8 billion) bridge over the Detroit River after years of opposition from the owners of the existing Ambassador Bridge, who made a major donation recently to a political group aligned with US President Donald Trump.

Under the deal, Canada will share the equivalent of half of operating profits, after operational expenses, and direct proceeds to a US-run regional development fund, the officials said, speaking on condition of anonymity to detail the agreement.

The underlying text of the original deal – which was between Canada and the State of Michigan only – is not being changed, the officials said.

“The Windsor-Detroit Bridge Authority will also work collaboratively with the government of the US on toll-rate adjustments, seeking concurrence for certain non-market related toll changes,” Canada said in a news release, without offering additional details.

The release said the agreement includes the creation of a “15-year economic development fund tied to a portion of profits from bridge operations”.

The US will control that fund, according to an American official.

Under the original terms, Canada was set to collect the bridge tolls until its construction costs were recouped, after which the revenues would be split evenly. Michigan and Canada are to share ownership of the structure.

That deal is not being amended, but the Canadians are agreeing to effectively strike a side-deal with the Americans to reallocate some of the initial toll revenue, some of the officials said.

While the Canadian government’s announcement did not specify several details, the arrangement described by officials suggests that Michigan and Canada will still split toll revenue once the cost of the bridge is recouped and that the side-deal announced on July 10 does not affect Michigan’s eventual share.

An initial plan to open the bridge in June was postponed after an intervention by US Commerce Secretary Howard Lutnick, who pressed to renegotiate the deal for a larger share of toll revenue.

The US must also approve some changes in toll charges that are greater than 10 per cent, some of the officials said. The agreement emerged after two weeks of intense talks between US and Canadian officials.

Earlier, Michigan Governor Gretchen Whitmer’s office confirmed a deal had been finalised.

“The Gordie Howe International Bridge has always been a great deal for our state,” Whitmer said in a statement on July 10. “I’m proud to have fought for its opening and congratulate my partners who have worked on this issue alongside me for years.”

Mike Rogers, the Republican candidate for a US Senate seat in Michigan, said in a social media post that he had spoken to Lutnick and the bridge would be open “soon”. The state’s Senate race is one of the foremost pickup opportunities for Republicans this cycle.

Lutnick considers the bridge a separate matter from ongoing trade discussions. Trump decided against renewing the US-Mexico-Canada Agreement on trade, preferring instead to trigger a process that will lead to annual reviews on its terms. Bloomberg