A year ago, if the Oval Office had threatened to axe a major piece of infrastructure shared with Canada, markets would have been in disarray. But it\u2019s February 2026, and investors barely batted an eye. <\/p>\n
Overnight, President Trump made a series of threats against the Canadian government, including blocking the Gordie Howe International Bridge, which connects the state of Michigan with the Canadian province of Ontario and was expected to open this year.<\/p>\n
The reason for the furor appears to be Canada\u2019s plans to trade more closely with China, a key economic rival of the U.S. President Trump said the neighboring nation had \u201ctreated the United States very unfairly for decades\u201d\u2014a rhetoric now familiar to foreign governments, particularly since the Liberation Day tariffs announced in April 2025.<\/p>\n
Writing on Truth Social<\/a>, President Trump said that China \u201cwill eat Canada alive\u201d if its trade links increase, and America will \u201cjust get the leftovers.\u201d<\/p>\n Trump said the bridge will not be allowed to open \u201cuntil the United States is fully compensated for everything we have given them, and also, importantly, Canada treats the United States with the fairness and respect that we deserve.\u201d<\/p>\n Negotiations were to start \u201cimmediately,\u201d Trump said.<\/p>\n Writing on X<\/a>, Michigan Democratic Sen. Elissa Slotkin wrote that canceling the opening of the bridge would have \u201cserious repercussions\u201d for the economy of her state. She said it would entail higher costs for Michigan businesses, leave supply chains less secure, and ultimately lead to fewer jobs.<\/p>\n \u201cWith this threat, the president is punishing Michiganders for a trade war he started,\u201d the senator added. \u201cThe only reason Canada is on the verge of a trade deal with China is because President Trump has kicked them in the teeth for a year.\u201d<\/p>\n The nosedive in relations between America and its neighbor had little impact on markets this morning. One could argue a spat over a bridge may not have ramifications large enough for Wall Street to take much notice, but analysts at this stage are also familiar with the \u201cTACO\u201d trade\u2014the notion that Trump always chickens out.<\/p>\n As Paul Donovan of UBS noted this morning: \u201cDespite the tone of the statements, markets are likely to discount this rhetoric (tariffs on U.S. importers of goods from Iranian trading partners, 100% tariffs on U.S. importers of Canadian goods, and 50% tariffs on U.S. importers of Canadian aircraft have yet to materialize).\u201d<\/p>\n Trump claims China would end ice hockey<\/p>\n Trump also made an unusual claim about the nation\u2019s national sport: \u201cThe first thing China will do is terminate all Ice Hockey being played in Canada, and permanently eliminate The Stanley Cup.\u201d<\/p>\n