Canada’s Insolvency Risk Rises: Tariffs Could Lead to +1,900 Additional Cases by 2027

Canada enters 2026–2027 as one of the most exposed economies globally to the trade-driven rise in insolvencies. According to Allianz Trade’s Global Insolvency Outlook 2026–27, new U.S. tariffs and slowing global trade could push an additional 1,900 Canadian companies into insolvency over the next two years.

This heightened vulnerability reflects Canada’s heavy reliance on exports, particularly to the U.S., combined with increasing pressures on sectors already navigating tight financing conditions, high interest rates, and moderating demand.

While global insolvencies are expected to peak in 2026 (+5%) before easing in 2027, the Canadian outlook highlights the importance of staying proactive. Companies will need to closely monitor trade-exposed buyers, protect cash flow, and plan for uncertainty as tariff impacts ripple across supply chains.

Access the complete Global Insolvency Outlook 2026–27 at the link below

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