Big Banks Predict Canada's Economy Will Weather Trade War

Canada's big banks shared optimistic outlooks for the economy on Thursday, amidst an escalating trade war with the United States. The Royal Bank of Canada (RBC), Toronto-Dominion Bank, and CIBC reported financial results, highlighting their confidence in the country's growth prospects.

RBC CEO Dave McKay stated that 'the Canadian economy has proven to be resilient' and predicted continued expansion. TD Bank CEO Raymond Chun referred to an emerging 'super cycle' for investment in Canada, spurred by government spending on infrastructure and national defence.

CIBC CEO Harry Culham expressed 'measured confidence' about the back half of 2026, despite ongoing trade tensions. However, BMO Capital Markets predicts that US tariffs will carve roughly half a percentage point from Canadian growth.