Canada Is More Than a Neighbor, It Is Critical to Michigan’s Economy

The majority of Michigan voters, from Strong Republicans and Independents to Strong Democrats, view Canada as an “economic friend” by 70% or higher, according to the Detroit Regional Chamber’s Fall 2025 polling with the Glengariff Group, Inc. Voters also see Canadian tariffs as bad for Michigan’s economy by a three to one margin. Clearly, voters have a clear message on the trade wars: leave our Canadian neighbors alone.

This sentiment exists for good reason. Michigan and Canada have long shared a tremendous spirit of collaboration that includes playing crucial roles in global conflicts. Our economies and cultures have been interwoven for generations. Co workers in many industries are friends who cross the border each day. As neighbors, many of us share a common love for the beauty of Pure Michigan and Canada through tourism.

While the relationship remains strong, it was tested this past year, and 2026 will play a pivotal role in its future.

Michigan Faces a Disproportionate Risk to Trade Disruptions

Michigan’s and Canada’s automotive industries are intertwined. Together, we have been designing, engineering, and building vehicles for the past 120 years. Automotive OEMs and suppliers have major footprints in Michigan and Ontario as vehicles and components cross the border numerous times during assembly and production.

Michigan’s largest export market is Canada. The state exported $24 billion in goods to Canada in 2024 — or about 39% of all its imports. Vehicles and vehicle parts were Michigan’s largest export in 2024 at $25 billion, with 55% going to Canada.

All this to say, Michigan’s trade relationship with Canada is lucrative. But it puts our state and automotive industry at disproportionate risk when trade is disrupted by tariffs or other federal policies.

USMCA Negotiations Loom Large

The U.S.-Mexico-Canada Agreement (USMCA) is the bedrock of the automotive industry’s resilience, maintaining the supply chains, jobs, and business opportunities it generates. It dates back to NAFTA, started under Republican U.S. President George H.W. Bush and enacted by U.S. Democratic President Bill Clinton with overwhelming bipartisan support in Congress, with the goal to create a North American economic market to compete with a unified European Union.

The USMCA joint review process set for 2026 offers a valuable opportunity to strengthen this vital trade pact.

A healthy flow of trade, goods, and people across our shared border is essential to our automotive industry and requires a North American strategy that all three countries support. Given that Michigan’s largest trade partners are Canada and Mexico, it behooves us to view the three countries as one dynamic trade bloc. Strengthening the USMCA is an important step as the U.S. competes with China and the EU to lead the new global innovation economy.

Gordie Howe Bridge Will Strengthen This Connection

The opening of the Gordie Howe International Bridge will provide a new artery in this robust trade relationship while providing a stronger connection between our two countries.

While 2025 put unprecedented strain on U.S.- Canadian relations, it’s no small feat to unify the majority of Michiganders around a policy issue. But the strength of Canada’s and Michigan’s economies, does just that — and is worth rallying around.