US President Donald Trump’s tariff policy is increasing investment costs and discouraging companies from expanding their operations in the United States. Canada’s ambassador to Washington, Mark Wiseman, warned of this during the B20 business forum, CNBC reports.
According to the diplomat, the main problem for investors is the uncertainty surrounding trade restrictions, which raises the cost of capital and makes long-term planning more difficult.
“Uncertainty increases the cost of capital,” Wiseman said. In his words, companies are much more willing to build new factories, expand production and invest in research and development when they operate in a predictable regulatory environment.
The warning comes amid the ongoing trade dispute between Washington and Ottawa, which affects one of the world’s largest bilateral trade relationships.
During the first nine months of 2026, trade between the United States and Canada reached approximately USD 570 billion, according to data from the US Census Bureau. Despite the increase compared with the same period in 2025, the volume remains below the levels recorded in the previous three years.
At the same time, revenue from US tariffs on Canadian imports has risen sharply. According to data from the Congressional Research Service, it reached USD 10 billion in 2025, compared with just USD 400 million a year earlier.
A new study by the Federal Reserve Bank of New York shows that nearly 90% of tariff-related costs were passed on to US importers. Around one-quarter of the increase in tariff rates was subsequently reflected in consumer goods prices, with additional price pressure expected in 2027 as well.
The data are heightening concerns about inflation in the United States. In October, consumer prices rose by 0.4% month on month, exceeding analysts’ expectations.
President Donald Trump continues to defend tariffs as a tool to support US manufacturing and jobs. His administration accuses Canada of trade practices that place American exporters at a disadvantage.
The two countries resumed negotiations after they were suspended in August. The main points of contention remain tariffs on Canadian steel and automobiles, with Washington imposing rates of up to 50% on some categories of goods.
The Canadian ambassador called for the removal of tariffs introduced under Sections 232 and 338 of US trade law in order to restore predictability for businesses.
Wiseman recalled that the United States and Canada have maintained a free-trade regime since 1988, with Ottawa’s goal being to bring bilateral relations as close as possible to that model.
Canadian Prime Minister Mark Carney also confirmed that the Trump administration remains the country’s main partner in trade negotiations, despite the changed political situation in Washington following the midterm elections.
European diplomats also voiced similar concerns during the B20 forum. Germany’s ambassador to the United States, Jens Hanefeld, noted that companies can adapt to tariffs, but constant changes in the regulatory environment increase their administrative and legal costs.
French Ambassador Aurélien Lechevallier called for closer cooperation in artificial intelligence and energy instead of continuing trade disputes.
The diplomats’ positions reflect growing concern among international businesses that prolonged tariff uncertainty could limit investment, delay industrial projects and increase costs for both producers and consumers.