Canada’s ambassador to the U.S., Mark Wiseman, warned at the B20 summit in Washington on Wednesday that President Donald Trump’s tariffs are increasing investment costs and discouraging business expansion. Wiseman, a former BlackRock executive, emphasized that uncertainty raises the cost of capital, making long-term investments like new plants or R&D more difficult.
The warning comes amid ongoing trade tensions between the U.S. and Canada, with tariffs affecting one of the largest trading relationships between the two countries. Bilateral trade reached roughly $570 billion in the first nine months of 2026, up from 2025 but lower than the previous three years under Joe Biden’s presidency. U.S. customs duties on Canadian imports surged to $10 billion in 2025, compared to just $400 million in 2024.
New Federal Reserve research found that nearly 90% of tariff costs are passed on to U.S. importers, with about a quarter of those increases reaching consumer prices. The study also predicted further price pressures in 2027, as consumer prices rose 0.4% in October, fueling inflation concerns. Trump has defended the tariffs as necessary to protect U.S. manufacturers, accusing Canada of unfair trade practices.
Wiseman called for the removal of tariffs under Sections 232 and 338 of U.S. trade law, stating that a resolution would help businesses make long-term investment decisions. The political landscape has shifted following the midterms, with Democrats set to challenge Trump’s tariffs when they take control of Congress in January. Canadian Prime Minister Mark Carney reiterated that the Trump administration remains Canada’s principal negotiating partner.
European ambassadors also expressed concerns at the B20 summit. Germany’s ambassador, Jens Hanefeld, noted that businesses struggle with an ever-changing regulatory environment, while France’s ambassador, Aurélien Lechevallier, urged greater cooperation on AI and energy instead of continued trade disputes.