Canada and the United States have reached an agreement to open the Gordie Howe International Bridge, a new crossing connecting Michigan and Ontario, on July 27, following months of delay and renegotiations. The bridge, which links Detroit with Ontario’s industrial heartland, is seen as a critical infrastructure project to facilitate trade between the two countries, particularly in the automotive sector.

The deal was announced last week after U.S. Commerce Secretary Howard Lutnick intervened to halt a planned opening ceremony in June, citing dissatisfaction with the original terms. The initial agreement, struck between Canada and the state of Michigan rather than the U.S. federal government, allowed Canada to finance the entire $6.4 billion construction cost upfront and recoup those expenses over several decades before sharing revenue with Michigan. However, U.S. President Donald Trump expressed unhappiness with the arrangement earlier this year, prompting renewed negotiations.

Under the newly disclosed arrangement, the United States and Canada will share net toll profits generated by the bridge for a period of 15 years. Canada has committed to funding a regional development agency using half of these net profits. Despite the announcement, both governments have provided only limited details about the precise terms, resulting in differing interpretations.

Canadian Prime Minister Mark Carney told media that debt servicing costs — including the interest on Canada’s $6.4 billion investment — will be deducted before profits are calculated and shared. This would reduce the amount the U.S. receives, as Canada would be reimbursed for its investment first. In contrast, a U.S. official, speaking anonymously, stated that neither loan interest nor depreciation would be deducted before calculating the U.S. share, suggesting a potentially higher revenue share for the United States.

Carney characterized the situation as beneficial for Canada given current traffic forecasts, which indicate modest profits from tolls. Ottawa anticipates net profits to be a small fraction of total revenue. A spokesperson for the U.S. Commerce Department said the United States is satisfied with the agreement, highlighting that it allows U.S. authorities to participate in setting tolls and ensures an equal share of net revenues.

The Gordie Howe International Bridge is expected to relieve congestion on the existing Ambassador Bridge, a privately owned commercial crossing that now handles most traffic between Detroit and southern Ontario. Despite ongoing U.S.-Canada trade tensions and tariffs introduced under the Trump administration, bilateral trade remains substantial, with nearly US$880 billion exchanged in goods and services last year, only slightly down from 2024.

However, initial traffic volumes on the new bridge may be lighter than originally anticipated. Factors such as Canadian consumer boycotts of U.S. travel in response to tariffs and political rhetoric, as well as changes in cross-border commercial patterns, could impact toll revenues in the near term. Local analysts estimate that around 400 commercial vehicles per hour might use the bridge, with tolls for a four-axle truck starting at $27.60.

Both Canadian and U.S. officials acknowledge that legal and administrative details of the profit-sharing and toll management arrangements are still being finalized, though there is no indication these issues will delay the scheduled opening at the end of July. The bridge, named after Canadian-born hockey legend Gordie Howe who spent much of his career with the Detroit Red Wings, stands as a symbol of ongoing economic ties and cooperation amidst complex political dynamics between the two nations.