Canada's ambassador warns Trump tariffs are raising costs and chilling U.S. investment
Canada's ambassador to the U.S. warned that tariff uncertainty is raising the cost of capital and holding back expansion, as duties on Canadian imports jumped to $10 billion in 2025.
What happened
Canada's ambassador to the United States, Mark Wiseman, warned on Wednesday that uncertainty around President Donald Trump's tariffs is raising investment costs and discouraging businesses from expanding. Wiseman, a former BlackRock executive who became ambassador in February, spoke at a gathering of global business leaders in Washington.
Wiseman called for the removal of tariffs imposed under Sections 232 and 338 of U.S. trade law, saying a resolution would help businesses make long-term investment decisions. "Uncertainty increases your cost of capital," he said. "The sooner, the better."
Trump has defended the tariffs as necessary to protect U.S. manufacturers and workers. The two governments have resumed negotiations after talks collapsed in August, with discussions focused on reducing tariffs on Canadian steel and automobiles. Trump has imposed duties of up to 50% on certain Canadian products, prompting retaliatory measures targeting billions of dollars in U.S. exports.
- U.S.–Canada goods trade, first 9 months of 2026$570 billion
- U.S. duties on Canadian imports, 2025$10 billion, vs $400 million in 2024
- Tariff costs passed to U.S. importersnearly 90%
- Consumer prices, October+0.4%
- Duties on some Canadian productsup to 50%
The cost in numbers
The United States and Canada exchanged roughly $570 billion in goods during the first 9 months of 2026, according to U.S. Census Bureau data. That is an increase from the same period in 2025, but lower than the comparable 9 months during the previous 3 years.
U.S. customs duties calculated on imports from Canada reached $10 billion in 2025, compared with $400 million in 2024, according to the Congressional Research Service. An October study by New York Fed researchers found that nearly 90% of tariff costs were passed on to U.S. importers, with about a quarter of tariff increases eventually reaching consumer goods prices and further price pressures expected in 2027.
Labor Department data showed consumer prices rose a higher-than-expected 0.4% in October, adding to inflation concerns after the midterm elections.
What to watch
Canada is seeking to attract investment with a lower effective business tax rate, while the political stakes have shifted after the midterm elections. Democrats are preparing to challenge Trump's tariffs when they take control of Congress in January. Canadian Prime Minister Mark Carney said on Tuesday that the Trump administration remains Canada's principal negotiating partner.
Wiseman said Canada's objective is to return as close as possible to free trade, noting that the two countries have had comprehensive free trade since 1988. Germany's ambassador to the U.S. said businesses could adapt to tariffs but struggled with an ever-changing regulatory environment, while France's ambassador urged greater cooperation on AI and energy rather than continued trade disputes. This post summarizes reported facts and our view of the risks involved. It is not a forecast and not investment advice.
