Is the American-Canadian friendship caput? Canadian Prime Minister Mark Carney said that America can no longer be trusted, and he wants to disentangle the Canadian economy from the United States. President Donald Trump is subjecting Canada to massive tariffs and says he wants the country to dissolve into the American union. This is all a bad sign for Michigan.

Michigan is close to Canada and has close economic ties with its neighbor. An economic and political divorce between the two would be bad. Michigan relies on Canadians for a lot, and both sides benefit from the partnership.

Canadian companies and consumers import more goods from Michigan than those of any other country. Michigan producers exported $23.3 billion in goods to Canada in 2024, representing 38% of the state’s total exports. Only Texas exports more goods to Canada than Michigan.

Michigan companies rely on supply chains that run through Canada. Recall that Michigan vehicle plants were idled when protesters in Windsor shut down the Ambassador Bridge. The automakers buy Canadian parts not out of loyalty to Canada but out of competitive pressure to keep prices down and assembly lines moving. Taxing goods when they cross borders will increase prices and hurt jobs in both Canada and Michigan.

The bulk of trade that Canada does with America comes through Michigan. Around 60% of the truck traffic coming in from Canada comes through Detroit and Port Huron. Maybe even more will do so when the new Gordie Howe Bridge opens.

Oil and natural gas pipelines come to Michigan from Canada and go back into Canada. It’s more convenient that way, and it ensures safe and cheap energy delivery. People in both countries benefit from inexpensive and reliable fuel.

Governments often work to ensure that their military suppliers are domestic so they won’t disrupt the country’s ability to fight. Yet the trust between America and Canada has been strong enough that Canada relies on Michigan producers for parts and supplies for its tanks.

Canadian students attend Michigan universities and vice versa.

It only makes sense that people on both sides of the border find beneficial ways to improve each other’s condition. That’s what voluntary exchange does. People who share a border have opportunities to find win-win scenarios.

The desire to split up the economies of the two nations will make both sides worse off. Tariffs make consumers’ preferred options more expensive. Dividing the economies will make the best opportunities for producers like Michigan’s automakers more expensive. They will find it harder to compete in the global market, and that will hurt the state job market.

It's not clear what Canada will do in response. But it’s unlikely our neighbor to the north will look for ways to help its people cross its biggest border to serve Canadians’ wants and needs.

Michigan has a good thing going with its Canadian neighbors. Our elected officials ought to stop treating allies as adversaries. And they ought not get in the way of letting people on both sides of the border figure out the best ways to cooperate.

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