Economist: Border Blockade Could Cost Michigan Economy Over $50 Million | News

The premier of Ontario has said vehicles blocking trade between the United States and Canada must get out of the way or they will.

Ottawa has declared a state of emergency as leaders seek more authority to remove so-called freedom convoy protesters who are blocking three major railroad crossings.

A blockade at the Ambassador Bridge is a protest against Canada’s COVID-19 restrictions for truckers and it scolds the US economy and supply chain.

Dr Timothy Nash of Northwood University said around 40,000 cars and trucks cross the bridge each day.

“They bring in $360 million worth of passengers, goods and services every day. Five to six days of a complete traffic stoppage would mean shutting down a business of nearly 2.5 billion dollars. It’s a Fortune 500 company,” Nash said.

Nash said it’s a blow not just to the US economy, but directly to Michigan.

“It could be a direct hit of $50 million to $100 million to Michigan’s economy in terms of net losses,” Nash said.

Dr. Jason Miller of Michigan State‘s Eli Boad College of Business said the effects are spreading beyond the auto industry. The United States also imports things like aluminum and steel from Canada.

“If this were to persist for several days or even, say, another week, you would start to see sporadic shortages and issues for suppliers and businesses in other industries,” Miller said.

A Canadian judge has issued an injunction to the city of Windsor that would allow police to begin evacuating protesters Friday night.

Miller said it could be days before order is restored.

“If it were to be cleaned up by Monday, it would still probably take almost the end of the week to start putting things back completely in place and back to normal. So we’re probably still looking at another week of destruction even after the end of the protest,” Miller said.

The longer it persists, the more it will cost the US economy.

“Potentially a few billion dollars in a week,” Nash said.