Trade Minister Dominic LeBlanc said Canada’s top pension fund managers could increase their investments in the U.S. by at least $100 billion a year. He stopped short of suggesting the government would impose a mandate on pensions’ U.S. holdings in exchange for lower tariffs from Washington. (Bloomberg)

Talking point: U.S. President Donald Trump has sought foreign investment pledges in exchange for less punitive trade terms. Japan, for instance, struck a deal with Washington this week that will lower its tariff rate on imports to the U.S. from the threatened 25 per cent to 15 per cent, after committing to invest US$550 billion in American industries. Directing more pension dollars to the U.S., however, would be a tough sell to the institutional investors, whose strength rests in part on their independence from political interference. CPP Investments spokesperson Michel Leduc told Bloomberg the fund isn’t part of any trade negotiations, while adding that as the fund’s total assets grow, so too will its U.S. investments. It looks ever less certain that Canada and the U.S. will reach a trade deal by the Aug. 1 target. Trump said Friday it may not happen, and that the U.S. may impose more tariffs on Canada unilaterally.

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