10
Loading video...
By Rich Percival
Associate News Editor
0
Share
Newsweek is a Trust Project member
See more of our trusted coverage when you search.Prefer Newsweek on Googleto see more of our trusted coverage when you search.
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.
Read More on News
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.
“Uncertainty increases your cost of capital,” Wiseman said during a discussion involving ambassadors from several Group of Seven (G7) countries.
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.
Higher Costs for Americans
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. Canada and Mexico supported renewing the USMCA in July, but Washington declined to extend it in its current form.
The agreement remains in force, with annual reviews, but is scheduled to expire in 2036 unless the three countries agree to renew it.
Canadians See an Opening
Nearly half of Canadians believe the U.S. midterm election results will make it easier for Ottawa to negotiate favorable trade terms with Washington, according to a new Leger survey.
The poll found 48 percent expected negotiations to become easier, compared with just 7 percent who anticipated greater difficulty. Another 30 percent expected no change, while 16 percent said they did not know enough about the results to judge their impact.
Overall, 72 percent considered the election outcome good news for Canada. But distrust of the United States remained widespread: 38 percent described it as an enemy, down from 41 percent in August, while only 20 percent regarded it as an ally.
Leger surveyed 1,527 Canadian adults online between November 6 and 9.
The results were weighted to reflect the population, but the survey’s nonprobability sample means no conventional margin of error applies.
...
Meanwhile, Alberta-based Rig Hand Craft Distillery said it closed a packaging facility in Texas because of concerns surrounding U.S. tariffs, losing contracts in Texas, Arizona and Alaska.
Quebec equipment manufacturer RefPlus lost a $1.6 million order after an American customer feared tariffs could be imposed before delivery. The equipment was not subject to the duties, but the customer chose a U.S. supplier instead.
US Vows To Press On
The White House, however, is showing no sign of abandoning Trump's tariffs despite growing opposition over their impact on prices.
Jim Goyer, director of the White House Office of Public Liaison, told the B20 summit on November 10 that the administration intended to maintain its approach for the remainder of Trump's presidency.
"And we are just getting started," he said, according to CNBC.
But Gary Cohn, Trump's former chief economic adviser and now IBM vice chairman, warned that tariffs amounted to "a consumption tax on the U.S. consumer."
Cohn argued that the revenue collected by Washington came at a cost to American households. He also suggested a possible compromise under which Congress could preserve protections against unfair Chinese trade practices while removing tariffs on Canada.
Democrats have pledged to challenge Trump's trade policies when the new Congress convenes in January, although the president retains the power to veto legislation aimed at reversing them.
Contact Newsweek editors on this story: Emma Lee-Sang
View 0 Comments
Submit Correction
View Editorial & AI Guidelines