As Canada's retaliatory tariffs take effect, the Canadian and US car industries express concern about the impact of the trade war, while Canadians are reducing travel. A new suspension bridge, the Gordie Howe International Bridge, connecting Detroit, Michigan, with Windsor, Ontario, recently opened after over two decades of planning, but the celebration was attended only by Canadians. Michigan auto industry spokesperson Glenn Stevens Jr. noted that normally such an event would involve leaders from both countries.
In July, US President Donald Trump announced a 50% tariff on a wide range of goods from Canada, followed by a doubling of tariffs on Canadian automobiles and auto parts to 50%. In response, Canadian Prime Minister Mark Carney implemented tariffs ranging from 15% to 50% on $20 billion worth of goods imported from the US. These retaliatory measures took effect on September 8, 2026. Polls conducted by the Canadian non-profit Angus Reid indicated that many Canadians supported a tougher stance on tariffs, although there were concerns about job security among workers.
Business leaders warned that escalating tariffs would harm economies on both sides of the border. The Canada and US Business Association (CUSBA) stated that new tariffs would increase costs, disrupt production, delay investments, and weaken competitiveness. The Financial Accountability Office of Ontario projected that the new tariff regime could lead to a loss of 119,000 jobs in the province by 2026, particularly in the auto industry, where manufacturing output is expected to decline by 8%.
The interconnected economies of Michigan and Ontario were highlighted by the Detroit Regional Chamber, which noted that engines produced in Michigan are used in trucks built in Ontario and vice versa. In 2023, Detroit automakers were reported to support 815,000 indirect jobs and 147,000 direct jobs across the US. The chamber has called for a return to normalcy, focusing on the United States-Mexico-Canada Agreement (USMCA or CUSMA in Canada).
Before the tariff announcements, the Detroit auto industry had already experienced stagnation, with stable production and employment levels but a lack of new job creation. Recent data indicated a slowdown in vehicle listings, with 33,000 more vehicles listed compared to the previous year but 70,000 fewer in the past month.
US auto companies had begun adjusting their business plans prior to the latest tariff announcements, anticipating increased manufacturing costs that have now been passed on to consumers, resulting in record sales prices for new cars exceeding $52,000 in September.
The tariffs have also affected other sectors, with reports of a cooling relationship impacting property transactions, tourism revenue, and the local economy. Claude Molineri, CEO of Visit Detroit, noted that many Canadians view visiting the US as unpatriotic, contributing to an 11% decrease in Canadian visitors to Detroit compared to 2025.
Several campaigns promoting 'buy Canadian first' have emerged in response to the tariffs, directing consumers to local businesses and Canadian products. The cities of Detroit and Windsor/Essex typically facilitate over $100 billion in trade annually, accounting for nearly a third of all trade between the US and Canada. The ongoing tariff dispute poses significant risks to these economic ties.