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US-Canada tariff dispute weighs on cross-border ties

US-Canada tariff dispute weighs on cross-border ties

dw.com 08.09.2026 12:09 3 views
As Canada's retaliatory tariffs take effect, Canadian and US car industries fear the trade war will hit them hard, while Canadians are cutting back on travel.

A new suspension bridge connecting the United States to Canada recently opened after more than two decades of planning, but only the Canadians showed up to celebrate. The Gordie Howe International Bridge spans the Detroit River, connecting Detroit, Michigan with Windsor, Ontario. It is named after a Canadian hockey player who starred for a US team.

"In normal times, that would be a very, very big celebration, a grand event, with leaders of both countries present," Michigan auto industry spokesperson Glenn Stevens Junior told DW. But these are hardly normal times in US-Canada relations. In July, US President Donald Trump announced a 50% tariff on a wide range of goods from Canada.

A second Trump announcement days later of the doubling of tariffs on Canadian automobiles and auto parts to 50%triggered even more concern for businesses on both sides of the new bridge. Canadian Prime Minister Mark Carney countered with tariffs between 15% and 50% on $20 billion (€17.2 billion) worth of goods imported from the US. To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video The retaliatory measures took effect at 12.01 Eastern Standard Time ( /UST) on Tuesday September 8.

Polls by the Canadian non-profit Angus Reid suggested that the majority of Canadians were in favor of a tougher stance in tariffs. At the same time, Canadian workers feared for their jobs, the polls found. Business leaders, too, have warned of the harmful effects of the tariffs on the economies of both countries.

"An escalating cycle of tariffs and retaliation will ultimately harm businesses, workers, and consumers on both sides of the border," the Detroit-based Canada and US Business Association (CUSBA) said in a statement in response to the tit-for-tat tariff hikes. "Each new tariff compounds costs, disrupts production, delays investment, and weakens the competitiveness of US and Canadian businesses." Further north, the Financial Accountability Office of Ontario estimated the new tariff regime will cost 119,000 local jobs in 2026. Many of these are predicted to be in the auto industry, with Ontario's auto manufacturing output estimated to shrink by 8% in 2026 compared with a no-tariff scenario.

This contraction is expected to be felt on the US side too, especially in Michigan, where more than a fifth of all vehicles produced in the US in 2022 were built, including several well-known household brand names. The economies of Michigan and Ontario are deeply interconnected, the Detroit Regional Chamber stressed in August. "Engines that are built in Michigan go into trucks that are built in Ontario, engines that are built in Ontario go into trucks that are built into Michigan," said Glenn Stevens Jr, who is also the chamber's Chief Automotive and Innovation Officer.

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