What impact tariffs could have on the Gordie Howe International Bridge
It's been a roller coaster ride day after President Trump initially announced plans to increase tariffs on steel and aluminum products from Canada to 50%.
Mr. Trump made that announcement on his social media site Truth Social Tuesday morning. It was in response to Ontario placing a 25% surcharge on electricity coming into the U.S. Hours later, U.S. Secretary of Commerce Howard Lutnik spoke with Ontario Premier Doug Ford. After that conversation, Ford agreed to suspend the 25% surcharge for now.
Will the threat of a new tariff impact projects like the Gordie Howe International Bridge? Officials say it's unlikely.
Completion of the Gordie Howe International Bridge is getting closer and closer.
"It's kind of difficult to say percentage wise, because each of the components kind of moves at its own pace. So I'd say probably close to the 90-94% complete on each of the four components," said Heather Grondin, Windsor-Detroit Bridge Authority (WDBA) Chief Relations Officer.
While progress on the link between Canada and the U.S. continues, experts agree that the ongoing trade will only hurt businesses and consumers here at home.
"I think that American consumers are going to be caught between the rock and the hard place. In order for them to be able to continue living the quality of life that they're accustomed to, they are going to have to absorb a larger share of these tariffs, and it is going to be in the $1000s," said Shooshan Danagoulian, associate professor of economics at Wayne State University.
Economists say that if Americans buy fewer cars or build houses, they might feel the pinch less.
"However, if American consumers respond by buying fewer houses, buying fewer cars, we know that at the end of the day, it's the American economy that's going to suffer anytime consumers slow down their spending, it's bad for the economy," Danagoulian said.
The WDBA is overseeing the Gordie Howe International Bridge project. The group says nothing can stop progress now of the project, including an increased tariff on steel and aluminum products.
"There is still some steel work that needs to be done. It's smaller than what you might envision. So those kind of major pieces of steel that were required for the bridge deck, that's all done now. It's more things like handrails, guard rails, fencing that needs to be installed, and that's much smaller from a procurement perspective," Grondin said.
Despite the threat of higher tariffs, construction on the Gordie Howe International Bridge is still on track to wrap up in September of this year.
