Stakeholders in Canada’s agri-food industry are concerned about the uncertain future of trade with the U.S., particularly due to a 25% tariff on Canadian goods and services promised by U.S. President Donald Trump for his second term. Some view these tariffs as a threat to the Canada-U.S. trade relationship, while others see them as typical Trump posturing, possibly setting the stage for trade negotiations.
If the tariffs become a reality and the trade relationship deteriorates, Canada’s options could be constrained. However, Canadian agribusinesses, especially those dealing directly with the U.S., have some strategies to protect themselves. They can use trade credit insurance, which covers the risk of payment default, and political risk insurance, which helps guard against potential political instability or unfavourable changes in trade policies.