Canada says Trump tariffs are jacking up costs for U.S. businesses
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Canada’s ambassador to Washington said Donald Trump’s tariffs are driving up costs for American companies and chilling investment, while a Canadian poll suggests optimism that future trade talks could finally curb the damage.
Canada’s ambassador to the United States, Mark Wiseman, told the B20 summit in Washington on Nov. 11 that the uncertainty created by President Donald Trump’s trade policies is inflating the cost of capital for U.S. firms and making long-term investment decisions needlessly harder.
"Uncertainty increases your cost of capital," Wiseman said during a discussion with other G7 ambassadors.
He said companies are far more likely to build new plants, buy ships or fund research when they can actually predict the regulatory environment instead of being whipsawed by tariff threats. Wiseman called for the removal of tariffs and a return to freer trade, noting that the two countries have maintained a free-trade relationship since 1988.
U.S. customs duties on Canadian imports rose to about $10 billion in 2025, according to Congressional Research Service data, up from $400 million the previous year. The charges affect roughly $56 billion of goods, although most Canadian imports remain duty-free. Canada remains the United States’ second-largest trading partner and third-largest source of foreign direct investment, with $747 billion invested in the United States, and supplies 64 percent of U.S. crude oil imports.
The dispute escalated in August when President Trump imposed 50 percent tariffs on selected Canadian products, prompting Canada to retaliate with duties on about $20 billion of U.S. goods and Washington to announce an import ban on certain Canadian items.
A Leger poll of 1,527 Canadian adults conducted Nov. 6-9 found that 48 percent believe the U.S. midterm election results will make it easier for Ottawa to negotiate favorable trade terms, while 72 percent view the outcome as good news for Canada.
U.S. Trade Representative Jamieson Greer said Washington has been in recent talks with Canada and is working toward a trade deal. White House Office of Public Liaison director Jim Goyer told the B20 summit that the administration intends to maintain its tariff approach for the remainder of President Trump’s term.
Former Trump economic adviser Gary Cohn warned that the tariffs act as a "consumption tax" on U.S. consumers and suggested a compromise that would keep protections against unfair Chinese trade practices while lifting tariffs on Canada. Democrats have said they will challenge the tariffs when the new Congress convenes in January, though President Trump retains veto authority.