Canadian ambassador warns U.S. tariffs increase investment costs
Canada's ambassador to the United States said President Donald Trump's tariffs are raising the cost of capital for businesses and hindering investment, as trade talks between the two countries continue.
Canada's ambassador to the United States, Mark Wiseman, told the B20 summit in Washington that the uncertainty created by President Donald Trump's tariffs is raising the cost of capital for firms considering new plants, ships or research and development projects.
Wiseman, a former BlackRock executive appointed in February, said that greater certainty would make businesses more likely to invest. He urged the removal of duties imposed under Sections 232 and 338 of U.S. trade law, adding that a swift resolution would help companies make long-term decisions.
The warning comes amid ongoing negotiations to resolve a tariff dispute that has seen U.S. customs duties on Canadian imports rise to $10 billion in 2025, up from $400 million the previous year, according to the Congressional Research Service. An October New York Fed study found that about 90% of tariff costs are passed on to U.S. importers, with a quarter eventually reaching consumer prices.
President Trump has defended the tariffs as necessary to protect U.S. manufacturers, while Canada seeks to lower duties on steel and automobiles. European ambassadors at the summit echoed concerns about the shifting regulatory environment and its impact on business costs.
Canadian Prime Minister Mark Carney reiterated that the United States remains Canada's main trading partner, and Wiseman said Canada aims to return "as close as we can to free trade" while providing the certainty needed for investment.