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Commercial insurers face long-term exposure as Canadian tariffs shift supply chains
A 50% tariff pause on about $20 billion of Canadian imports may be temporary, but brokers say clients still need to recheck suppliers, lead times, and business income coverage after supply chain changes.
US President Donald Trump delayed a new round of 50% tariffs on Canadian goods that were scheduled to begin August 19, offering businesses a brief reprieve. The tariffs covered roughly $20 billion of Canadian imports, but the delay came with the administration saying the US and Canada were finalizing a trade deal, while Canadian Prime Minister Mark Carney said progress was made but work remained.
For commercial insurance agents, Insurance Business said the more durable issue is the year of supply chain adaptation that preceded the pause, since the exposures that businesses created may persist even if the tariff schedule changes. Kristina Talkowski, Nationwide's mid-market commercial lines leader, said companies need more detailed scrutiny of suppliers and business continuity plans because relying heavily on one country can become more disruptive when tariffs shift.
Talkowski said the review needs to vary by sector, such as contractors assessing where building materials originate and manufacturers checking whether alternative suppliers can deliver essential components quickly enough to keep production running. She also noted that supply chain changes can affect recovery time after a loss, including whether lead times have shifted enough to extend the business income restoration period, which may require reassessing whether existing business income limits remain adequate.
Nationwide senior economist Ben Ayers added that reassessment remains critical even after clients adjusted strategies. He said the firm believes it is past the peak uncertainty around tariffs, and that many businesses have already changed sourcing and supply chains, while still expecting policy uncertainty to continue.
He also said many clients have been acting with the expectation the policy could remain in place for the next couple of years, which underscores why brokers are focusing on continuity planning rather than only tracking immediate cost impacts from tariffs.