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New Deal for Detroit River Crossing Gives U.S. Half of Tolls While Canada Bears Debt

Published Jul 17, 2026
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Summary:
  • Canada paid the full C$6.4 billion construction cost for the Gordie Howe International Bridge.
  • A new side agreement gives the U.S. 50% of net bridge revenue for 15 years, with no mechanism for Canada to recover interest or principal payments.
  • The bridge opens July 27, 2026, after President Trump delayed it to renegotiate the revenue‑sharing terms.

A New Bridge, a New Deal

The Gordie Howe International Bridge has been in the works for years. It stretches 1.5 miles across the Detroit River and is supposed to make shipping and travel between Canada and the U.S. smoother and faster.

But before it can open, the two countries had to redo the financial arrangement. Under the original plan, Canada would collect all toll revenue until the debt was paid off. That changed after President Trump objected in February 2026.

Now the U.S. gets a cut of the toll money starting from day one.

The bridge is a critical link for the $323 billion in annual two‑way trade between Canada and the U.S., much of which crosses the Detroit River. The existing Ambassador Bridge, owned by the Moroun family, has long held a monopoly, and the new publicly owned crossing aims to increase capacity and competition.

How the Revenue Split Works

For 15 years after the bridge opens, Canada will pay the U.S. half of the "net bridge and crossing related revenues." That means after operating costs are covered, the two countries split what's left evenly.

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Here is the catch: the written agreement does not include any way for Canada to recover its interest expenses or debt payments. Prime Minister Mark Carney said publicly that "splitting of tolls, any sharing of the toll revenue, won't happen until all of the debt is repaid." But the document itself says otherwise. When asked about it, Carney told CTV: "We get the revenues. Then the servicing of the costs of the bridge and paying the debt of the bridge, and then what's left over, there's a split of that for 15 years."

In practice, Canada pays the interest and principal on its own, and the 50% split is based on net revenue after operating costs. The U.S. also has a say in toll pricing. It can veto any increase or reduction that would move the toll more than 10% above or below the average of comparable regional crossings in a single fiscal year. This authority extends for a 15-year period.

The Politics Behind the Delay

Why did this deal get reworked at the last minute? The bridge was originally supposed to open in June 2026. Commerce Secretary Howard Lutnick pushed to block that timeline and demanded a share of the revenue for the U.S.

For years, the Moroun family - which runs the rival Ambassador Bridge in Michigan - has campaigned against the new crossing arrangement. They met with Lutnick just before Trump took to social media in February, expressing dissatisfaction with the prior terms and seeking a more favorable arrangement. Lutnick persisted in his demand for a revenue share and prevented the bridge from opening as scheduled in June.

The result was a new side agreement that delayed the opening but got the bridge moving.

What It Means for the Money

Carney is optimistic about the long run. Carney expressed confidence that the accord is designed to promote sustained collaboration in an automotive hub that the President has targeted with tariffs. "It reinforces more traffic, more traffic, higher revenues, more investment, and that's the way it moves forward," the prime minister said.

But there is a real question about how profitable the bridge will be early on. On Thursday, Carney remarked that the bridge is not expected to be very profitable initially and might even run at a loss for a period. If traffic is slow and revenue is thin, Canada is left covering its own debt payments with no help from the U.S. side.

For investors, this matters because the Gordie Howe Bridge is a major piece of North American trade infrastructure. Companies that ship goods between Ontario and Michigan rely on crossings like this to keep supply chains moving. If the bridge boosts traffic and eventually becomes profitable, the long-term value is there. But the short term looks like a waiting game, with Canada taking the financial risk while the U.S. gets paid from year one.

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