Canada says Trump tariffs raise costs for U.S. businesses

Canada’s ambassador to the United States, Mark Wiseman, told the B20 summit in Washington on Nov. 11 that uncertainty over President Donald Trump’s trade policies is raising the cost of capital for U.S. firms and making long-term investment decisions more difficult.

"Uncertainty increases your cost of capital," Wiseman said during a discussion with other G7 ambassadors.

He added that firms are more likely to commit to new plants, ships or research when they can predict the regulatory environment. 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.