Canada’s ambassador to the United States, Mark Wiseman, warned that President Donald Trump’s tariffs are raising financing costs and discouraging cross-border investment, urging Washington and Ottawa to restore predictability to their trade relationship.
Trump’s Tariffs Threaten Cross-Border Business Investment
“Uncertainty increases your cost of capital,” Wiseman said Wednesday, November 11, at the U.S. Chamber of Commerce’s B20 summit in Washington, according to a CNBC report. “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,” he added.
Wiseman, Canada’s ambassador since February and a former BlackRock Inc. (NYSE:BLK) executive, urged the removal of tariffs imposed under Sections 232 and 338. “The sooner, the better,” he said, calling for a return “as close as we can to free trade.”
Reuters reported in October that Washington and Ottawa were discussing limited relief for Canadian steel and automobiles. The negotiations involved tariffs of up to 50% on steel and 25% on vehicles, although Washington wanted additional concessions. Earlier discussions had explored a potential agreement before the midterms.
Federal Reserve Research Highlights Consumer Costs
The U.S. Census Bureau’s September figures put bilateral goods trade at approximately $570 billion during the first nine months of 2026. Congressional Research Service data showed U.S. duties on Canadian imports climbed to $10 billion in 2025 from $400 million in 2024.
New York Fed researchers found that nearly 90% of the 2025 tariff costs were passed through to U.S. import prices. Their research estimated that approximately 26% of tariff increases eventually reached consumer goods prices, including through higher costs for domestic producers. The indirect effects can take six to 12 months to filter through supply chains. Meanwhile, the Bureau of Labor Statistics reported that consumer prices rose 0.4% month over month in October.
Democrats Prepare Challenge To Trump’s Tariffs
Trump has defended tariffs as necessary to protect American manufacturers against unfair competition. However, Democrats plan to challenge Canadian import duties when they take control of Congress in January.
Wiseman stressed that long-term investment requires stable trade rules, underscoring Ottawa’s push for lasting tariff relief as businesses weigh expansion plans. Democrats, meanwhile, are preparing to challenge Trump’s Canada tariffs when they take control of Congress in January.
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