Canada Warns Trump Tariffs Increase Capital Costs

Canadian Ambassador to the U.S. Mark Wiseman warned at the B20 summit in Washington that tariffs imposed by President Donald Trump are increasing capital costs and discouraging business expansion. Wiseman noted that uncertainty regarding trade policy raises the cost of capital and hinders investments in research, development, and new infrastructure.

These warnings follow research from the Federal Reserve Bank of New York showing that nearly 90% of tariff costs are passed to U.S. importers, with consumer prices projected to rise further in 2027. While Donald Trump defends the duties as necessary to protect American workers and combat discriminatory trade practices, Canada is seeking the removal of duties imposed under Sections 232 and 338 of U.S. trade law.

Washington and Ottawa have resumed negotiations to reduce tariffs on Canadian automobiles and steel after previous discussions collapsed in August. Prime Minister Mark Carney maintains that the Trump administration remains Canada's primary negotiating partner, even as Democrats prepare to challenge the tariffs upon taking control of Congress in January.