The $4.7 billion Gordie Howe International Bridge opens to vehicle traffic at noon Monday, July 27, connecting Detroit and Windsor, Ontario.

A 50% tariff on Canadian goods set to take effect approximately August 19 is raising alarms for Michigan manufacturers and small businesses that depend on cross-border trade.

Canada held a ribbon-cutting ceremony Friday, July 24, in Windsor without U.S. officials present. Canadian Infrastructure Minister Gregor Robertson confirmed both sides of the bridge are ready, but said the joint celebration was scrapped because of the tariff dispute.

"Given the recent tariff action from the U.S. we felt that we should focus today on celebrating here in Canada, on the workers who put in all the work to build this bridge," Robertson said at the Friday ceremony.

The tariffs, signed Monday, July 20, under Section 338 of the Tariff Act of 1930, cover dairy, alcohol, cement, construction materials, and commercial refrigeration equipment. They apply regardless of the USMCA trade agreement, according to Logistics Management. It is the first modern use of Section 338.

Oakland University economics professor Michael Greiner told WXYZ before the ribbon-cutting that he was skeptical the opening would happen at all, given the history of delays tied to trade disputes.

"I'll believe the bridge is opening when it actually is open," Greiner said. "Because unfortunately we've been to this movie before."

What it means for Michigan businesses

Gov. Gretchen Whitmer said Michigan faces more tariff exposure than any other state because of its manufacturing base. The Ambassador Bridge, the only other bridge crossing between Detroit and Windsor, handled $126 billion in commercial truck trade in 2023.

Semi-truck driver and business owner Austin Floyd, who hauls material across the border, told WXYZ the prospect of tariffs has him concerned about the future.

"Definitely hurts small businesses," Floyd said. "I've seen warehouses I know of that used to take in stuff."

The Detroit Regional Chamber has estimated the Gordie Howe Bridge's delayed opening cost Michigan's economy roughly $1 million per day in lost trade, according to a Jalopnik report.

Tolls and access

Passenger vehicles will pay $5.75 per crossing, or $4.35 with a Breakaway electronic toll tag. Commercial trucks pay $8.75 per axle, or $6.90 with the discount tag. Pedestrians and cyclists can use the bridge's toll-free multi-use path beginning Wednesday, August 5.

The six-lane bridge spans 1.5 miles across the Detroit River, with towers standing 722 feet tall. Its main span of 2,798 feet makes it the longest cable-stayed bridge span in North America. Construction began in 2018, and Canada paid the full cost, according to Reuters.

What's next

The Section 338 tariffs take effect approximately 30 days after the July 20 signing. Trade law expert Jennifer Smith-Veluz told WXYZ that court challenges are expected. For Southeast Michigan businesses that source materials from Canada, the August 19 effective date is the next milestone to watch.