TORONTO — Royal Bank of Canada chief executive Dave McKay says the bank may see near-term headwinds that drive lower-than-expected performance, but the bank is well positioned amid the current economic uncertainty.
McKay says at the big Canadian bank’s investor day that RBC has started to see some softening across some of its businesses.
He says lower interest rates are being offset by increased uncertainty created by tariffs and the impact that’s having on businesses and jobs.
In particular, McKay says commercial client sentiment has weakened as companies in some sectors are deferring investments until they have greater clarity on the impact of tariffs on their businesses.
However, he says this is the moment to unite the country behind a long-term economic agenda that boosts competition and drives prosperity.
U.S. President Donald Trump signed an executive order Wednesday to impose 25 per cent tariffs on auto imports to the United States starting next week, but the cross-border integration of the industry is resulting in confusion over how that will play out.
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This report by The Canadian Press was first published March 27, 2025.
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U.S. President Donald Trump’s reciprocal tariffs on trading partners are set to take effect on April 2, a day he has proclaimed as “Liberation Day” for American trade. CTV News will have extensive coverage across all platforms:
- CTVNews.ca will have in-depth coverage, real-time updates, and expert analysis on what the tariffs will mean for Canadians.
- CP24.com will report on any developments out of Queen’s Park and what the tariffs means for the people of the GTHA.
- BNNBloomberg.ca will explain what this means for the business community, investors, and the market.
