Canada's Ambassador Mark Wiseman warned Wednesday that President Donald Trump's tariffs are raising investment costs and discouraging business expansion. "Uncertainty increases your cost of capital," Wiseman said at the B20 summit in Washington.
U.S. customs duties on Canadian imports jumped to $10 billion in 2025 from $400 million in 2024, according to the Congressional Research Service. Trade between the two countries totaled roughly $570 billion during the first nine months of 2026, down from the comparable period in previous years.
Research from New York Fed economists found that nearly 90% of tariff costs were passed to U.S. importers, with about a quarter of tariff increases eventually reaching consumer goods prices. The study predicted further price pressures in 2027.
Trump has defended tariffs as necessary to protect U.S. manufacturers and workers. He imposed duties of up to 50% on certain Canadian products, prompting Canadian retaliation targeting billions of dollars in U.S. exports. The two countries are negotiating, with discussions focused on reducing tariffs on Canadian steel and automobiles.
Wiseman called for removal of tariffs imposed under Sections 232 and 338 of U.S. trade law. "We've had comprehensive free trade with the United States since 1988," he said, describing Canada's goal as returning "as close as we can to free trade" while creating certainty for business investment.
Germany's and France's ambassadors at the summit also raised concerns about trade uncertainty and called for greater cooperation on other issues like AI and energy.