Canada's ambassador in Washington says U.S. tariffs are raising business costs and creating uncertainty that threatens investment in the American economy. Mark Wiseman made the comments at the B20 summit on November 11, arguing that President Donald Trump's trade policies make it difficult for firms to commit to new factories, equipment and research. He called for the United States and Canada to restore stability to their trading relationship. The warning comes as the two countries continue to struggle with a tariff dispute that escalated over the summer.
Wiseman said the unpredictability directly affects corporate spending plans. "Uncertainty increases your cost of capital," he told a discussion with other G7 ambassadors. He explained that companies need predictability to approve major investments like new plants or research projects. "If you’re going to build a new plant, add a new ship, spend money on R&D, the more certainty you have, the more likely you’re going to do that," Wiseman said. He advocated for removing tariffs and a return to freer trade, adding, "The sooner, the better."
The financial impact of the tariffs is significant. According to Congressional Research Service figures, U.S. customs duties on Canadian imports jumped to about $10 billion in 2025 from $400 million the year before. This 25-fold increase applied to roughly $56 billion in goods, though most imports from Canada still entered duty-free. Canada remains a crucial economic partner, having been America’s second-largest trading partner in 2025 and its third-largest source of foreign direct investment, with $747 billion invested in the U.S.
Industries like cars, steel, aluminum and lumber have been hit, adding costs to integrated supply chains. The dispute intensified in August when Trump imposed 50 percent tariffs on selected Canadian products. Canada retaliated on September 8 with duties on about $20 billion worth of American goods, prompting Washington to announce an import ban on certain Canadian products effective September 29. US Trade Representative Jamieson Greer said Thursday that Washington has spoken with Canada recently and is working on a trade deal.
Trade uncertainty extends to the North American trade agreement. While Canada and Mexico supported renewing the USMCA in July, Washington declined to extend it in its current form. The pact remains in force with annual reviews but is set to expire in 2036 unless all three countries agree to renew it. A new Leger survey found nearly half of Canadians believe recent U.S. midterm election results will make it easier for Ottawa to negotiate favorable terms. The poll showed 48 percent expect easier negotiations, while 72 percent saw the election outcome as good news for Canada.
Some Canadian businesses report direct losses from the trade tensions. Alberta's Rig Hand Craft Distillery closed a packaging facility in Texas due to tariff concerns, losing contracts in Texas, Arizona and Alaska. Quebec equipment maker RefPlus lost a $1.6 million order after an American customer, fearing new tariffs, chose a U.S. supplier instead. The White House shows no sign of backing down, with an official stating the administration plans to maintain its approach for the rest of Trump's term. "And we are just getting started," Jim Goyer, director of the White House Office of Public Liaison, said on November 10.
Critics argue the tariffs harm American consumers. Gary Cohn, Trump's former chief economic adviser, warned they amount to "a consumption tax on the U.S. consumer." He suggested a compromise where Congress could preserve protections against unfair Chinese trade practices while removing tariffs on Canada. Democrats have pledged to challenge Trump's trade policies when the new Congress convenes in January, though the president holds veto power over any legislation aimed at reversing them.
