The Gordie Howe Bridge is set to open soon, but news late last week that profits from the bridge — paid for entirely by Canadian taxpayers — will be split with the U.S. earlier than originally planned have raised questions about how the agreement will work.
Details of a new deal were announced late Friday that will reportedly send about half of the money collected to the U.S., including on toll revenues.
“To support this opening and ensure that benefits are felt on both sides of the border, Canada and the United States have agreed to a series of cooperative measures focused on toll governance and transparency, as well as investments in the region, including through the establishment of a 15-year economic development fund tied to a portion of profits from bridge operations,” said the federal government Friday in a release.
“The Windsor-Detroit Bridge Authority will also work collaboratively with the Government of the United States on toll-rate adjustments, seeking concurrence for certain non-market related toll changes.”
Prime Minister Mark Carney suggested on Thursday that the original deal may need to be modified in order to get the bridge opened after several delays, saying, “I think we’re willing to clarify aspects of the current arrangements.”
This comes amid tense trade negotiations with the U.S. and after there was no official extension or replacement for the Canada-U.S.-Mexico Agreement (CUSMA) at the July 1, 2026, deadline.
The bridge is set to open on July 27 after several months of delays. Canada fronted the entire $6.4 billion in costs for the construction and development of the bridge. Drivers must pay a toll to cross it, and under the terms of the original agreement, Canada would have received all toll revenues to cover the cost.
A source speaking to The Canadian Press with knowledge of negotiations, who was not authorized to speak publicly about them, said that under the deal, Canada gets 50 per cent of the toll profits — after operational expenses — and the other half will go to a U.S-run regional development project for a 15-year time frame.
Over the weekend, U.S. President Donald Trump said in a social media post that this new arrangement was “a MUCH BETTER DEAL for America.”
Last month, a scheduled ribbon-cutting ceremony was cancelled, with Carney referring at the time to “a series of technical aspects which we’ll work through with the United States.”
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Trump has been pushing for more U.S. ownership of the bridge.
In a social media post from February, Trump said Canada owns the entire bridge, including the part of the bridge located on U.S. soil.
“With all that we have given them, we should own, perhaps, at least one half of this asset,” he wrote.
Trump also threatened to block the opening of the bridge and trade route until the U.S. is “compensated for everything we have given” Canada.
Under the terms of the original agreement signed in 2012, the Canadian-run Windsor-Detroit Bridge Authority (referred to as “the crossing authority”) was entitled to set and collect the crossing tolls, and the U.S., or Michigan side of the bridge, could not.
“The Crossing Authority shall be entitled to set rates for and to collect, or cause to be collected, the Canadian Crossing Tolls for payment of costs,” the 2012 agreement says.
“No Party may establish or collect tolls, fees or other charges for use of the Michigan Crossing or the Michigan Interchange.”
In 2012, the transport minister at the time issued a statement saying, “This new crossing will be jointly owned by Michigan and Canada. Once the builder and Canada have fully recouped their investment from tolls, Michigan and Canada will enjoy an equal share of the toll revenues.”
In the original agreement, it was expected to take at least 50 years for Canada to recoup its costs for the bridge construction and development.
“The Parties do not anticipate that the first Canadian Contributions Recoupment Date will occur until at least fifty (50) years after the Effective Date,” the agreement says.
But under the terms of this newly reported profit-share deal, Canada could be extending that timeline because the profits it would have otherwise collected are effectively being cut in half.
In 2017, Trump, along with the former prime minister Justin Trudeau, issued a joint statement ahead of construction of the bridge beginning the following year.
“Given our shared focus on infrastructure investments, we will encourage opportunities for companies in both countries to create jobs through those investments,” the statement said.
“In particular, we look forward to the expeditious completion of the Gordie Howe International Bridge, which will serve as a vital economic link between our two countries.”
It isn’t clear why exactly these changes were made, including for toll revenues.
Global News sent separate requests for comment on the specifics of how the new deal emerged to both the Prime Minister’s Office (PMO) and Housing, Infrastructure and Communities Canada. A spokesperson for the PMO deferred to Housing, Infrastructure and Communities Canada, and they referred to the public release.
At least one economist says this new profit-sharing deal sends the wrong signal for the trade outlook between Canada and the U.S.
“The U.S. and Canada signed the initial agreement stipulating that Canada would collect tolls until the investment was paid off after the U.S. refused to chip in but Michigan welcomed the initiative. Years later, the U.S. signature on the agreement is worthless,” said vice-president and economist Derek Holt at the Bank of Nova Scotia in a statement on Monday.
“Perhaps Canada’s willingness to pay a bribe was the correct thing to do in the short-term, but signing long-term deals with the U.S. on anything has suffered an additional blow. Remember that on trade.”
– with files from The Canadian Press
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