Wiseman Links Tariff Uncertainty to Higher U.S. Investment Costs

Canadian Ambassador Mark Wiseman said uncertainty over U.S. tariffs is increasing companies’ cost of capital and discouraging expansion, while U.S. importers carry most tariff expenses.

Speaking Wednesday at the B20 summit in Washington, Wiseman said firms are more likely to build plants, add ships and invest in research when they have greater certainty. “Uncertainty increases your cost of capital,” he said.

U.S.-Canada goods trade reached about $570 billion in the first nine months of 2026. U.S. customs duties calculated on Canadian imports totaled $10 billion in 2025, versus $400 million in 2024. U.S. tariffs reach 50% on some Canadian goods, and Canada has responded with duties targeting billions of dollars in U.S. exports.

U.S. importers carried close to 90% of tariff expenses. About one-fourth of tariff increases eventually appeared in consumer goods prices, with further price pressure expected in 2027. Consumer prices rose 0.4% in October, more than expected.

Ottawa is promoting a lower effective business tax rate to attract investment. Washington and Ottawa have returned to negotiations after talks fell apart in August. The discussions focus on cutting tariffs affecting Canadian steel and automobiles.

Wiseman called for ending U.S. duties under Sections 232 and 338 of trade law, saying their removal would help companies make long-term investment decisions. “The sooner, the better,” he said.

President Donald Trump has defended the tariffs as protection for U.S. manufacturers and workers and accused Canada of trade practices that discriminate against U.S. exporters. Democrats are preparing a tariff challenge ahead of their January takeover of Congress. House Democrats placed ending Trump tariffs on their 100-day agenda.