Canada’s ambassador to the United States warned Wednesday that President Donald Trump’s tariffs are driving up investment costs and hindering business expansion, as a new Federal Reserve study points to further price hikes for U.S. consumers next year.
“Uncertainty increases the cost of capital,” Ambassador Mark Wiseman said at the B20 Summit, a gathering of global business leaders in Washington hosted by the U.S. Chamber of Commerce.
“If you’re going to build a new factory, add a new ship, invest in research and development, the more confident you are, the more likely you are to do it,” said Wiseman, a former BlackRock executive who became Canada’s ambassador in February.
His warning comes as Washington and Ottawa struggle to resolve a tariff dispute that affects one of America’s biggest trading relationships. The two countries exchanged about $570 billion in goods in the first nine months of 2026, according to U.S. Census Bureau data. That’s an increase compared to the same period in 2025, the first year of President Trump’s second term, but lower than the equivalent nine months during the past three years when Joe Biden was president.
According to the Congressional Research Service, calculated U.S. tariffs on Canadian imports rose from $400 million in 2024 to $10 billion in 2025.
An October study by New York Fed researchers found that nearly 90% of tariff costs are passed on to U.S. importers, and that about a quarter of the tariff increases end up on consumer goods prices, with further price pressures expected in 2027.
The survey results came as Labor Department data showed consumer prices rose by a better-than-expected 0.4% in October, heightening inflation concerns after Republicans suffered heavy losses in the midterms.
President Trump has accused Canada of discriminatory trade practices that disadvantage U.S. exporters and defended the tariffs as necessary to protect U.S. manufacturers and workers.
The two governments have resumed negotiations after talks broke down in August, with talks focusing on lowering tariffs on Canadian steel and automobiles. President Trump has imposed tariffs of up to 50% on certain Canadian products, prompting retaliatory measures targeting billions of dollars of U.S. exports.
Wiseman said the resolution will help companies make long-term investment decisions and called for the elimination of tariffs imposed under Sections 232 and 338 of the U.S. Trade Act.
“The sooner the better,” he said.
Political interests have shifted after the midterm elections, with Democrats preparing to challenge President Trump’s tariffs when they take control of Congress in January.
Still, Canadian Prime Minister Mark Carney said Tuesday that the Trump administration remains Canada’s main negotiator.
“We’ve had comprehensive free trade with the United States since 1988,” Wiseman said, explaining that Canada’s goal is to “get as close to free trade as possible” while creating the certainty that businesses need.
European ambassadors echoed these concerns at the B20 summit. Jens Hannefeld, Germany’s ambassador to the United States, said that while companies can adapt to the tariffs, they struggle with an “ever-changing regulatory environment” that forces them to increase legal fees to adapt to changing trade rules.
Speaking on the same panel, French Ambassador Aurélien Lechevalier called for greater cooperation on AI and energy rather than continuing trade disputes.
“I think we’ve spent a lot of time over the last few years dealing with regulations and tariffs,” he said. “Companies want to do more business.”
