Opportunities in the Americas: tech, free(er) trade and rich resources
When global businesses explore opportunities in the Americas, three markets stand out: the United States, Canada and Brazil. These are the countries in the region where Allianz Trade offers solutions for multinational corporations (MNCs) – each presenting unique advantages for growth.
As the largest worldwide economy, the United States is the main growth engine of the Americas. A global leader in technology, the country is especially seeing expansion in the artificial intelligence (AI) sector. Here, companies of all sizes are investing in new infrastructure to support AI capabilities, creating opportunities for US and global businesses. Additionally, many MNCs located outside the US sell to American customers, contributing to a massive domestic market.
Canada, which has close economic ties with the US through shared trade agreements and interconnected supply chains, has historically offered a stable business environment. While the country has been significantly impacted by recent US tariff changes, it has been working to diversify its exports. And thanks to the Canada-U.S.-Mexico Agreement (CUSMA), some goods across industries – from agriculture to machinery and equipment – can be exempt from tariffs if they meet certain criteria.
In Brazil, key industries include automotive, construction and food (from soy or beef to biscuits and soft drinks). The vast and diverse country is emerging as a key base for MNCs from outside of the region that wish to operate in Latin America.
Geopolitical tension and inflation drive uncertainty
Despite the region’s many opportunities, the US government’s tariff policy is bringing trading in the Americas face-to-face with growing uncertainty. By increasing taxes on imported goods, these tariffs are raising costs for companies and forcing many multinational corporations to reroute established supply chains – while menacing ever more organizations with the risk of default.
Additionally, inflation and high interest rates are putting pressure on consumers in the US, making them more cautious than before about how they’re spending their income. This wariness has hit sectors like retail, e-commerce and construction especially hard. Automotive companies are also struggling with higher costs of materials, as well as lingering supply chain disruptions that started during the Covid-19 pandemic and continue to affect production timelines.
Technology remains a bright spot, especially in the US – but even here, the rapid pace of growth and turmoil around tariffs has introduced risks. In the AI space, for example, many suppliers depend heavily on just a few clients, increasing financial exposure if anything should go wrong.
And while Brazil can offer MNCs access to regional markets, it also faces economic challenges due to inflation and a weak economy, as well as climate-related impacts on industries such as agriculture. Moreover, like in Canada, many of the country’s industries are vulnerable to US economic policies. The recent 50% US tariff announced on imports from Brazil adds pressure to commodity producers: 12% of Brazil’s exports, including products such as fruit juice, go to the US.
In this environment, MNCs need bespoke solutions that adapt to shifting risks – whether those arise from changing trade policies, consumer trends or sector-specific challenges that can occur at a moment’s notice.
Flexible coverage for high-stakes situations
Allianz Trade offers unique risk management solutions to serve this dynamic market. With substantial backing offered by the Allianz Group, we can handle the concentrated, large-scale exposures that characterize the Americas.
For companies in capital-intensive industries like AI, where exposure to single buyers can reach hundreds of millions, we offer flexible coverage. Our Excess of loss (XoL) solution is ideal for businesses that want to keep control over most of their risk but need protection in case of large, unexpected losses. We also offer hybrid coverage that blends traditional trade credit insurance with XoL features for companies that prefer to manage the majority of their risk in-house. For example, companies can get non-cancellable coverage on their top clients while keeping more flexible terms for the rest.
Partnering with knowledge, innovation and unparalleled capacity
The Americas offer vast scale, innovation and opportunity – but the landscape grows more complex by the day. To succeed amid challenges such as inflation and fluctuating trade policies, companies need to manage risk with solutions that are as dynamic and ambitious as their own business.
Allianz Trade acts as a partner that understands both local market subtleties and international risk patterns. By offering deep regional expertise combined with innovative solutions for MNCs and a capacity to cover large projects or clients, we help businesses thrive in this challenging environment.
