Banks Predict Canada Can Weather Trade Storm

Canada's big banks are expressing optimism that the country's economy can withstand renewed trade tensions between Canada and the US. The banks' executives acknowledged the uncertain environment as a headwind to certain sectors and Canadian consumers, but noted that the average effective tariff rate remains low at approximately six per cent, with over 80 per cent of exports remaining duty-free.

RBC CEO Dave McKay said during his company's earnings call that while Canada and the US have yet to come to a longer-term solution, the current situation is manageable. McKay also pointed out that most trade between the two countries remains duty-free.