The U.S. Chamber of Commerce said on Monday that the business community is calling on leaders in Washington to make "smart" policy choices, highlighting the importance of ratifying the U.S.-Mexico-Canada Agreement and resolving trade tensions with China.

"There are growing questions about the strength and the direction of our economy," Thomas Donohue, CEO of the U.S. Chamber of Commerce, told reporters at a press conference.

"Uncertainty stemming from the U.S.-China trade tensions, various international hotspots softening global economy, and warning signs in the bond markets are making people nervous. When people get nervous, they sit on their money," said Donohue, who pointed to the recent decline in business investment.

That is why the U.S. administration should make smart policy choices that would restore confidence, he said.

"Resolving the trade tensions with China is critical to restoring business certainty and to keeping our economy on track," Donohue said.