A new bridge is to be built between Detroit and Windsor, Ontario, in Canada.
Michigan Governor Rick Snyder and Canadian officials announced the $US2.2 billion project in Detroit on Friday. It is expected to be completed by 2020.
The existing bridge was built 84 years ago. It is the busiest commercial link between the two countries.
Ambassador Bridge owner Manuel Moroun said his company has exclusive rights over border crossings in the area. The BBC reports he has sought for years to block construction of a new bridge.
The total cost for the project, including land purchases and road construction, is expected to be about $US2.2 billion.
Canada will pay Michigan's share of the bridge's construction, $US550 million, recouping the outlay through future toll revenue.
Canadian Labour Minister Lisa Raitt said over 8000 trucks cross the bridge each day.