In an exclusive interview with CanadianSME Small Business Magazine, Andrew Perkins, Senior Vice President at NFP, highlights the financial risks Canadian SMEs face amid new U.S. tariffs. With three decades of experience in trade credit and political risk, Perkins explains the secondary effects, vulnerable industries, and the role of trade credit insurance in safeguarding stability.

Perkins notes that beyond rising costs, tariffs could trigger revenue losses, higher expenses, and more corporate bankruptcies—already up 30% in 2024. This leaves Canadian businesses more exposed to bad debts. Trade credit insurance, he says, protects companies from customer insolvency while also strengthening their ability to secure financing.

Industries most at risk include primary metals, food and beverage, chemicals, machinery, aerospace parts, and pulp, paper, and wood products. Still, Perkins stresses that SMEs across all sectors can benefit from coverage, countering misconceptions that it’s only for large exporters.

Beyond protection, trade credit insurance improves access to credit lines and provides ongoing monitoring of customers’ financial health. This not only prevents losses but also supports smarter growth. Perkins’ final advice: as tariffs push companies to explore new markets in Canada and abroad, trade credit insurance can help SMEs expand confidently and mitigate risks along the way.

👉 Read the full article here: Navigating Tariff Turbulence

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