Canada Warns Tariffs Raise U.S. Investment Costs
Canada's ambassador Mark Wiseman said uncertainty from tariffs is discouraging business expansion, as talks between the two governments have resumed.
Updated on Nov. 11, 2026 in International Trade
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Canada's ambassador to the U.S., Mark Wiseman, warned at a B20 summit in Washington that President Donald Trump's tariffs are raising investment costs and discouraging business expansion. A New York Fed study found nearly 90% of tariff costs were passed on to U.S. importers.
Why it matters
Wiseman said uncertainty increases the cost of capital for businesses weighing new plants, ships, or research spending. Trump has defended the tariffs as necessary to protect U.S. manufacturers and workers, and accuses Canada of discriminatory trade practices.
U.S. customs duties on Canadian imports rose to $10 billion in 2025 from $400 million in 2024, and an October New York Fed study found nearly 90% of those costs fell on U.S. importers. Whether the pass-through to consumer prices will widen beyond the roughly one-quarter reported so far remains unclear.
The players
Mark Wiseman
Wiseman is a former BlackRock executive who became Canada's ambassador to the United States in February.
Donald Trump
Trump is the current President of the United States, who has imposed tariffs on Canadian goods and defended them as protection for U.S. manufacturers and workers.
The details
Wiseman, a former BlackRock executive who became Canada's ambassador in February, spoke at the B20 summit hosted by the U.S. Chamber of Commerce. Trump has imposed duties of up to 50% on certain Canadian products, and talks between the two governments collapsed in August before resuming.
Timeline
August 2026: Tariff talks between the U.S. and Canada collapsed.
October 2026: A New York Fed study found about 90% of tariff costs were passed to U.S. importers.
November 11, 2026: Wiseman delivered the tariff warning at the B20 summit in Washington.
January 2027: Democrats are expected to take control of Congress and may challenge the tariffs.
Market Dynamics
The New York Fed's pass-through findings extend the pattern documented during the 2018–2019 tariffs, where most of the cost fell on American importers rather than foreign producers. Those earlier results shape the current debate over whether tariff revenue offsets the investment drag that Wiseman describes.
Businesses weighing new plants or research spending face higher uncertainty and capital costs, which can affect the investments that shape portfolio returns. Retail investors may see the effect through slower corporate expansion and pricing pressure as tariff costs move toward consumer goods.
The takeaway
Tariff disputes raise costs well beyond the border, because importers absorb most of the expense and businesses delay investment while the rules remain uncertain. Watching how talks progress will show whether that uncertainty eases.
What happens next
Democrats are expected to take control of Congress in January and may challenge Trump's tariffs at that point, while the U.S. and Canada have resumed negotiations.
Further reading
For more on how tariff disputes reshape cross-border commerce, see International Trade.
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