Allianz Trade Warns $20 Billion in Canadian Goods Face Credit Squeeze as Tariffs Lift Rates to 8.4%
Updated
Updated · Insurance Business · Aug 11
Allianz Trade Warns $20 Billion in Canadian Goods Face Credit Squeeze as Tariffs Lift Rates to 8.4%
2 articles · Updated · Insurance Business · Aug 11
Summary
Rising claims from Allianz Trade customers are signaling that tariff-hit Canadian businesses are already moving from lost sales into cash-flow stress, with credit access at risk as US demand weakens.
Section 338 tariffs have pushed the overall rate on Canadian goods to 8.4% from about 5.9%, and Allianz says the damage extends beyond autos, alcohol and dairy to roughly $20 billion of other exports.
David Dienesch said the key question is whether existing credit lines will hold if US sales fall, because shrinking cash reserves can quickly disrupt payments to suppliers and employees.
Trade credit insurance can help cushion bad-debt losses and improve access to working capital, Allianz said, noting Canadian banks already factor such coverage into lending decisions.
Allianz expects the uncertainty to last for years, urging companies to treat risk management as a continuous task rather than wait for tariff conditions to ease.