Dave McKay had one number ready for analysts: six per cent. That, the RBC chief executive said on his bank’s third-quarter earnings call, is the average effective tariff rate Canada now faces, with more than 80 per cent of exports still crossing the border duty-free. “While Canada and the U.S. have yet to come to a longer-term solution,” he said, the rate “remains low.”
The Canadian Press reported on August 27, 2026, that the country’s big banks used their quarterly calls to play down the latest trade flare-up with the United States. The tariffs in question landed the weekend before. President Donald Trump imposed 50 per cent duties on about $28 billion worth of Canadian products, and Ottawa answered with dollar-for-dollar tariffs on a range of American goods.
Executives said the economy is holding up. Most also admitted the uncertainty hurts certain sectors and Canadian consumers.
“Pretty good” fundamentals
Scotiabank chief executive Scott Thomson called the dispute “manageable” on his bank’s call on Tuesday. He pointed to three things: job growth, fiscal capacity backed by oil prices, and activity starting up because of the prime minister’s agenda. Put together, he said, “you actually have a backdrop that’s pretty good.”
CIBC took a more cautious line. The bank said it is planning for a range of outcomes and that trade and geopolitical tensions are having real effects on the economy. Chief risk officer Frank Guse said credit performance held up during the quarter. CIBC has been adding reserves for tariff risks through expert credit judgment overlays since the start of fiscal 2025, and kept building its allowance this quarter. Its most sensitive business lending tied to tariffs, Guse said, is less than one per cent of the total loan portfolio. The bank has also stress-tested its portfolios.
Backing for Carney’s plan
Every executive expressed some optimism about Prime Minister Mark Carney’s economic agenda. It covers national-interest projects and other major infrastructure, a wider spread of trade partners, and a stronger defence capability.
National Bank chief executive Laurent Ferreira told analysts on Wednesday’s call that business confidence and investment are difficult right now. Still, he said, he is encouraged by how governments and business leaders are rallying around the country’s priorities. CIBC chief executive Harry Culham went further. He described a renewed focus on sovereignty and economic resiliency as one of the most significant capital mobilization efforts the country has seen in decades, and said the defence industrial strategy is a substantial opportunity for commercial clients.
Valuations had worried the banks heading into the quarter, since their share prices rose sharply this year. Analysts, the Canadian Press said, appeared to view the results positively.
