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New US Canada Bridge Starts Operations

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New US Canada Bridge Starts Operations

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100 segments

0:00

Spoke to senior White House correspondent and in house Canadian, Josh Wingrove, about it. Talk to

0:05

us about this bridge. When does it open? When does it fake open? And when can

0:09

you really start driving some cars across it?

0:12

I I mean, it felt like this day would never come, really. It had its fake

0:15

opening ceremony on Friday. The Canadians held a Canadian only event celebrating a little bit of

0:22

road hockey as you'd imagine being played on that. The official commercial opening comes on Monday,

0:26

and this has been a long time coming. I mean, this bridge dates back more than

0:30

a decade in terms of planning and wrangling and arguing over who will pay for it.

0:35

This is typically the most important trade corridor in North America in terms of trade volumes.

0:41

Of course, Michigan known for its auto sector, connecting it to the part of Canada that

0:45

has its auto sector. The number of tractor trailers that go back and forth is just

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substantial. And until now, it's been one privately owned bridge, the Ambassador Bridge. It's been the

0:55

only route in particular for those trucks. There's a tunnel, but trucks can't fit in the

0:58

tunnel. And so they've always wanted a second bridge, in particular one that took you know,

1:03

offered a second option to this privately owned

1:07

existing bridge, and that's what brings us here today. But, obviously, it's just gotten caught up

1:11

so much in the wrangling between the president and Canada. He seems to really have a

1:16

bean as bonnet of the Canadians right now. And so we've we saw that sort of

1:20

you know, that lightning found the pull of this bridge to try to sort of upend

1:23

the deal, and that's what led to this opening being delayed. And so on the one

1:27

hand, finally finally, it's opening. But on the other hand, prime minister Kearny had to cut

1:31

a deal and give Trump a a slice of the pie to get there. And so

1:35

it's a bit of a moving target and indicative of the fraught times that they're in

1:38

in terms of Canada, US trade.

1:39

As this current president we're gonna get back to the metaphorical nature of this in just

1:43

a minute, Josh. But as this current president is fond of pointing out, this is a

1:47

bridge that was started under president Obama back in 2012, I I believe. Describe the need

1:54

for why this is is this is taking so long and sort of how how it's

1:57

different than the Ambassador bridge you mentioned just a moment ago.

2:01

Well, it's a bit of an engineering marvel. I mean, as you know, I'm an engineer.

2:04

Not at all. I have no expertise in this, but people keep talking about that. They

2:08

wanted this just for redundancy, and for, you know, added capacity. And the initial debate that

2:14

went on for a long time was who would pay for it. Trump likes to say,

2:19

obviously, that it came in under Obama, but let me also know that it came in

2:21

under under prime minister Harper, a conservative prime minister, Canada's last, conservative prime minister, most recent

2:27

one. And so there's bipartisan consensus in Canada and in The US about this, including with

2:33

Michigan, and that original deal is between Canada and the state of Michigan. The US government

2:37

is not a part of it. So they finally struck a deal in 2012 to build

2:40

this thing, and the deal was Canada would front the money. They would finally build it.

2:44

And through toll revenue, Canada would get repaid. And once that happened, Canada and Michigan would

2:50

split the profits or split the revenue or whatever. That is the deal that was leading

2:54

into this. And Trump, of course, didn't like that and wanted a cut of the pie.

2:58

And so the thinking here is that having a brand new bridge and a second option

3:03

offers guarantees in a region that carries just so much traffic that, you know, god forbid

3:09

something would happen or maintenance requirements or god knows on the Ambassador Bridge that there would

3:14

be another option to keep trucks flowing. Of course, one big question, not only for traffic

3:18

on this bridge, but for the region's economic development more broadly, is what the auto sector

3:22

is gonna look like in the future, not only in Michigan, but on the other side

3:25

of the border in Ontario. Trump is wanting to reshor a lot of production of autos

3:29

and auto parts from Ontario to Michigan. Canada, of course, looking to defend its auto sector.

3:35

Where that is gonna land, we don't know. And how that lands will substantially impact what

3:41

kind of commercial traffic is slowing across this border. But for now, you know, this bridge,

3:46

like I said, is a sort of a widespread, you know, bipartisan support in Canada seen

3:51

as basically a no brainer up there so much that the country agreed to swallow its

3:55

pride and front the money for it. And that's what made president Trump's sort of intervention

4:00

at the eleventh hour all the more, frustrating and even insulting committee of the Canadian officials

4:05

who worked on this project.

4:06

Josh, the thing I'm confused about is the president issued a a tweet or a truth

4:09

social or whatever the verb form of that is now.

4:12

I love how we say issued a tweet. Issue.

4:14

Truth socials. I don't I don't you know what? That's about enough.

4:18

An edict. Sorry. Alright.

4:20

Stop it. Basically saying that they've changed the deal so The US now gets 50% of

4:25

the profit. But that's not it's the net profit that they're getting. And my understanding is,

4:31

doesn't Canada have to pay itself back first? So how is this fundamentally different from the

4:35

original deal?

4:37

If you've been watching the Canadian news, which I know both of you do very closely

4:41

Nightly. There's been much made about this, and the prime minister has been in the hot

4:44

water over how he's described this. But the way to look at it is that there

4:47

two deals. So it's the original deal, Michigan and Canada, and then this new side deal

4:52

between Canada and The US. And the and Kearny was sort of bouncing between the two

4:57

a little faster than might have been clear, and Trump is referring to the side deal.

5:03

So the initial deal remains in place. Not a single thing has been touched on it,

5:07

and that deal sees Michigan get half the cut once the Canadians are repaid. But what

5:12

Canada has agreed to do is for fifteen years, a number that Trump left out of

5:15

his truth, pay half of net proceeds after operational costs to an American regional development fund

5:23

with some sort of joint input on what it invests in, but controlled by the Americans.

5:27

And that's where we we landed on this. Now for Kearny, I think it's fair to

5:31

say he views this as essentially a low price for certainty in a project that opens,

5:37

but also that creates a structure that kind of incentivizes continued development in the region in

5:42

a very modest way, obviously. But Kearny is saying, look. More traffic means more development means

5:48

good for everyone. And so he's sort of downplaying the Canadian concerns from critics who are

5:54

saying, look. You had you gave a you you made a concession to president Trump on

5:57

this. What gives? He's saying it's very marginal that early on there will, in fact, in

6:02

his estimation, no profits to split and that the profits would sort of ramp up over

6:07

the years and towards the end of the fifteen year agreement. Whereas for president Trump and

6:10

commerce secretary Howard Ludlow, who led the push on this from the American side and even

6:14

delayed a planned opening in the past, their argument is, well, look. We had nothing before,

6:19

now we're getting a slice of this, and isn't this great. This has been separate from

6:23

the overall trade talks. But, you know, as we sit here on Friday, the president was

6:28

going after the EU on trade. You know, he's got these new tariffs. Everyone's not really

6:33

sure where things are landing, and he's talking about, you know, tearing up this deal, which

6:37

didn't really happen to get a better deal on the bridge. All this is sort of

6:41

just continued uncertainty that I think will fuel questions about how strong deals made with the

6:47

Trump administration are. Trump keeps arguing that other people are breaking these deals, but his opponents

6:54

in other countries or the people on the other side of the table of them, can't

6:58

help but think that it seems like he moves the goalpost quite a bit on these

7:00

things. And so what we have here is the two side deals, but fundamentally, the bridge

7:04

is opening, and Kearny looks like he was willing to cut off a piece of the

7:07

pie to make that happen.

Interactive Summary

The video discusses the long-awaited opening of a new, essential trade bridge between Michigan and Canada. The project, which faced significant delays due to political maneuvering and complex negotiations, serves as a redundant route for high-volume automotive trade, supplementing the privately owned Ambassador Bridge. The discussion highlights the complexities of international trade relations, specifically detailing how Canadian officials had to navigate a side deal with the Trump administration—ceding a portion of future profits—to ensure the project's completion, reflecting broader uncertainties in US-Canada trade agreements.

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