Bank CEOs maintain positive credit outlook despite Canada-U.S. trade war escalations

TORONTO — Canadian bank CEOs remain optimistic about their credit outlooks despite the escalating trade war, but they are exercising caution. At the Scotiabank Financials Summit in Toronto, RBC CEO Dave McKay expressed concern about the ongoing trade tensions, yet noted that the credit situation in their consumer and commercial segments is generally improving.

However, he emphasized that tariff-impacted sectors are experiencing a high level of uncertainty and that the bank is maintaining a strong capital buffer to mitigate potential losses. Scotiabank CEO Scott Thomson expressed a similar outlook, stating that while he doesn't anticipate tariffs to significantly impact the bank's credit performance, the institution is closely monitoring the situation.

The trade war reached a new phase on Tuesday when Canada introduced retaliatory tariffs in response to U.S. tariffs introduced in August. In reaction to Canada's retaliatory tariffs, U.S. President Donald Trump signed executive orders completely barring imports of certain Canadian goods. Following the U.S. initial round of duties, Canada's major banks reported largely positive third-quarter earnings, crediting a resilient economy while acknowledging that the trade tensions were manageable.

This report by The Canadian Press was initially published on September 9, 2026. Companies mentioned in the story include RBC (TSX:RY) and Scotiabank (TSX:BNS).