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Edited by: R. Casey, M. Sass

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.

'Escalating tariffs will harm workers'

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.

The retaliatory measures took effect at 12.01 Eastern Standard Time (05:01 GMT/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."

Jobs at stake on both sides of the border

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.

Figures show that by 2023, Detroit automakers supported 815,000 indirect jobs through supply chains, as well as 147,000 direct workers across the US.

Detroit's chamber has called for a restoration of "normalcy," defined as a focus on the United States-Mexico-Canada Agreement, (USMCA, or CUSMA in Canada), due for an annual review.

Tariffs, EV attacks and AI blamed for job cuts

Even before the announcement of Trump's tariffs and Canada's counter-tariffs, Detroit's famous car industry had stalled.

The volume of production for companies was relatively stable as were jobs on and around auto factory lines, Stevens Jr said.

Although this meant there wasn't a significant loss in employment, new job opportunities weren't being created.

Analyzing the number of US car dealership franchise listings for new vehicles is a standard way of tracking auto production.

These listings show vehicle production has generally increased in the past 12 months, but the past 30 days show a significant slowdown.

Data from industry weekly Automotive News has around 33,000 more listed vehicles compared to this time last year, but 70,000 fewer vehicles were listed in the past month.

Beyond the car showrooms, the US auto industry's cautionary approach is apparent.

US auto companies were adjusting business plans even before the latest round of tariff announcements, with business leaders warning of increased US manufacturing costs.

These costs have now been handed down to the consumers, with US shoppers seeing record sales prices of more than $52,000 for new cars in September.

Companies had resisted hiring people or expanding over the past 18 months since tariff talks between Canada and the US had started to intensify, Stevens Jr said, adding to a lack of investment in new designs owing to withdrawn US federal support for electric vehicles.

Is cross-border friendship fraying?

Apart from the auto industry, the tariffs are impacting other sectors.

Across the US, real estate market media in June described a "cooling relationship between the two countries," affecting property transactions, tourism revenue and the local economy.

"Most Canadians think it's unpatriotic ... to visit the United States," Claude Molineri, CEO of Visit Detroit said of the cooling friendship and downturn in tourism.

Earlier this year, Detroit's official visitor site reported that the city had seen an 11% decrease in Canadian guests compared to 2025.

Meanwhile, several "buy Canadian first" online campaigns have been referring users to local businesses and Canadian ingredients in everyday grocery items in response to the tariff enouncements.

The cities of Detroit and Ontario's Windsor/Essex normally facilitate trade worth more than $100 billion each year, which is almost a third of all annual trade between the US and Canada, according to Downtown Detroit Partnership, a group of business and community leaders.

The cooling ties between the two countries could come at a heavy price.