President Donald Trump’s tariffs are making America a more expensive place to do business and threatening investment in the U.S. economy, Canada’s ambassador to Washington has warned. Mark Wiseman said uncertainty surrounding the president’s trade policies was making it harder for companies to commit to factories, equipment and research investments central to Trump’s promise to strengthen American manufacturing. Speaking at the B20 summit in Washington on November 11, Wiseman urged the United States and Canada to restore greater stability to their trading relationship.
His warning comes as businesses on both sides of the border weigh higher costs against the risk of further changes, and as Washington and Ottawa continue to struggle to resolve their tariff dispute. He continued: “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.” Wiseman argued that businesses were more likely to approve long-term spending when they could predict the conditions under which they would operate. Canada's ambassador also called for the removal of tariffs and a return to freer trade, saying: "The sooner, the better." He pointed to the two countries' free-trade relationship dating back to 1988.
American businesses have faced a much bigger bill for importing Canadian goods. U.S. customs duties calculated on those imports climbed to approximately $10 billion in 2025, up from $400 million a year earlier—a 25-fold increase, according to new Congressional Research Service figures. The charges applied to around $56 billion worth of goods, although most Canadian imports continued to enter America duty-free.
However, stakes extend far beyond goods crossing the border. Canada was America’s second-largest trading partner in 2025 and its third-largest source of foreign direct investment, with $747 billion invested in the United States. It also supplied 64 percent of U.S. crude oil imports by volume, alongside natural gas and electricity.
Tariffs have hit industries including cars, steel, aluminum, and lumber, adding costs to closely connected supply chains. Canadian softwood lumber, used primarily in homebuilding, faces longstanding trade duties on top of newer tariffs. The trade dispute escalated in August when Trump imposed 50 percent tariffs on selected Canadian products, citing discrimination against American businesses.
Canada responded on September 8 with duties on approximately $20 billion worth of American goods. Washington then announced an import ban on certain Canadian products, effective September 29. The uncertainty also extends to North America's trade agreement.
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