U.S. Commerce Secretary Howard Lutnick announced on Saturday that the U.S. will receive 50% of net revenue from the Gordie Howe International Bridge until 2041, calling it "the Art of the Deal in action." The bridge connects Windsor, Ontario, and Detroit, Michigan.
U.S. Gains Revenue Share and Toll Influence
In a social media post, Lutnick stated that before this agreement, the U.S. received nothing from the bridge’s operations. Now, America secures half of the net revenues and a role in setting tolls, with its share calculated before interest and principal payments.
Canada’s Cost Recovery and Revenue Projections
Canada, which fronted the $6.4 billion construction cost, will recover its investment before any revenue sharing begins. Prime Minister Mark Carney noted that net revenues may be "negative to modest" in the early years as traffic ramps up. The bridge is now set to open on July 27, following delays from its original 2026 timeline.
Political Debate Over Revenue Sharing Terms
Conservative leader Pierre Poilievre criticized Carney for "contradictory statements" on the deal. Carney clarified that toll revenue sharing will only start after Canada recovers its costs, with a 15-year agreement to split net revenues thereafter. The deal also includes cooperative measures on toll governance and a regional economic development fund.
Readers should watch for further details on toll structures and the economic fund’s implementation as the July 27 opening approaches.
