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Trade War and Declining Border Traffic: Implications for the Gordie Howe Bridge

Photo credit: www.cbc.ca

As the trade conflict ignited by U.S. President Donald Trump’s tariffs continues, cross-border travel between the U.S. and Canada has seen a significant downturn. This decline in travel comes just as the anticipated Gordie Howe International Bridge is set to open this fall.

Notably, Canadian taxpayers are covering the construction costs of the Gordie Howe International Bridge, which in 2024 saw its projected expenses increase by about $700 million, bringing the total construction cost to an estimated $6.4 billion, as reported by the Windsor-Detroit Bridge Authority (WDBA).

While a specific date for the bridge’s opening has not been confirmed, September has been suggested as a target month. The initial date of November was pushed back due to delays stemming from the COVID-19 pandemic.

Once operational, the Gordie Howe International Bridge will facilitate direct access from Ontario’s Highway 401 to Interstate 75 in Michigan. This strategically placed bridge is located to the west of two existing crossings—the Ambassador Bridge and the Detroit-Windsor Tunnel—that currently funnel traffic into Windsor’s urban core.

The Gordie Howe bridge aims to alleviate congestion in busier areas by providing a streamlined route for traffic, directly connecting major highways on both sides of the border.

The impact of Trump’s tariffs has notably affected border traffic, particularly those related to the automotive sector. Data from the Bridge and Tunnel Operators Association revealed a sharp drop of nearly 67,000 vehicles crossing the two Windsor routes in March compared to the same month the prior year.

WATCH | Windsor businesses look forward to quieter street with new bridge:

Huron Church businesses anticipate reduced traffic levels

When questioned on the potential impacts of the trade dispute on the bridge’s construction and expected traffic post-opening, WDBA spokesperson Manny Paiva refrained from commenting until after the April 28 federal elections, citing a need to support the democratic process.

Economics professor Shooshan Danagoulian from Wayne State University expressed concern that ongoing tensions between the two nations could adversely affect traffic and trade flows, leading to lower expectations for bridge utilization.

“We should be prepared for lowered projections,” Danagoulian stated. He emphasized the bridge’s long-term purpose and timeline, suggesting that while short-term difficulties may arise due to political issues, they shouldn’t overshadow its future viability.

Danagoulian noted that U.S. manufacturers and consumers are likely to adapt by accepting higher costs associated with continued trade with Canada. “I believe Americans may not significantly alter their consumer behaviors, so we may all end up paying more,” he added.

‘Continue to be an optimist’

Ryan Donally, the CEO of the Windsor-Essex Chamber of Commerce, remains hopeful regarding the Gordie Howe crossing despite current trade challenges. “I choose to remain optimistic,” Donally shared.

He views the bridge as a significant investment for future generations, symbolizing the historically strong ties between the U.S. and Canada. Although he anticipates some shifts in Canada’s long-term strategy with respect to the U.S., he believes that globalization will continue to play a vital role in the economy.

Highlighting the functional advantages, Donally mentioned that the bridge enables a smooth transit route from Montreal down to Florida without delay, making it an appealing option for travelers and commercial transportation.

“The Gordie Howe bridge is crucial in facilitating seamless movement of goods and services across the border,” Donally remarked.

‘Incredibly grateful’ to Canada

Sandy Baruah, president of the Detroit Regional Chamber, conveyed his heartfelt appreciation on behalf of U.S. residents, especially those in Michigan’s auto sector, for Canada’s financial commitment to the bridge project.

Baruah described the Trump administration’s tariff strategies as still evolving and has publicly criticized these economic policies. “The current situation is not favorable,” he indicated, emphasizing Michigan’s deep economic interconnections with Canada.

He anticipates extended timeframes for getting traffic moving over the new bridge should the political climate remain unchanged, thereby raising questions about pre- and post-tariff traffic levels.

Baruah believes the Gordie Howe bridge is a direct response to existing trade demands, demonstrating why the Canadian government invested significantly in its construction.

He noted that the same stakeholders enthusiastic about the bridge are likely critical of the present tariff policies.

Trucking associations monitoring closely

If the tariffs persist into the period surrounding the Gordie Howe bridge’s opening, Marco Beghetto, spokesperson for both the Ontario Trucking Association and Canadian Trucking Alliance, expects noticeable impacts on both new and existing crossings.

“There seems to be confusion throughout the supply chain on both sides of the border as shippers and customs brokers navigate the changes to their processes,” Beghetto reported.

He characterized the situation as a challenge for many to adapt to new compliance requirements, particularly since the Gordie Howe bridge will implement new procedures. “We are preparing for potential complications,” he cautioned.

Source
www.cbc.ca

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