TORONTO — With all the risks that the latest Canada-U.S. tariff war brings, executives at BMO Financial Group also say it offers a chance for governments to drive sweeping change around internal trade, taxes and infrastructure. “On the trade front, the Canada-U.S. relationship is going through a period of adjustment, and the uncertainty that brings represents a headwind in both countries for trade-related sectors and domestic affordability more broadly,” CEO Darryl White said on the bank’s third-quarter earnings call Tuesday. U.S. President Donald Trump imposed 50 per cent tariffs on about $28 billion worth of Canadian products over the weekend after trade talks collapsed. The federal government, meanwhile, announced Tuesday its own suite of retaliatory tariffs dollar-for-dollar on American goods, which are set to take affect Sept. 8. That includes upping tariffs on American steel and aluminum products from 25 to 50 per cent and imposing other levies on clothing, appliances, dairy products and more. White said the bank is working with its clients on issues ranging from liquidity to supply chain adjustments to diversifying markets, adding that he’s seeing clients are proving they can adjust well. He also said that “there may be some opportunities in the challenge we’ve got in front of us.” White said the trade situation provides a chance for the federal and provincial governments to use the moment to drive “transformational policy change” around the reduction of interprovincial trade barriers, moving quickly on the review and approval process for projects and ensuring a competitive tax policy. BMO reported a third-quarter profit of $1.75 billion, down from $2.33 billion a year earlier, as it took a charge related to the sale of its transportation and vendor finance businesses. The bank said Tuesday the profit amounted to $2.38 per diluted share for the quarter which ended July 31, down from a profit of $3.14 in the same quarter last year. On an adjusted basis, BMO earned $3.96 per diluted share in its latest quarter, up from an adjusted profit of $3.23 per diluted share a year ago. Revenue for the quarter totalled $9.90 billion, up from $8.99 billion a year earlier. BMO’s provision for credit losses amounted to $722 million, down from $797 million a year ago. Analysts on average had expected an adjusted profit of $3.76 per share and revenue of $9.75 billion, according to LSEG Data & Analytics. “BMO kicked off the third quarter earnings season with a solid beat which was predicated on strong performances within each of its operating segments,” John Aiken, an analyst at Jefferies, said in a note to investors on Tuesday. “We view the strength from its U.S. retail bank as a distinct positive and meant that BMO did not lean on solely wealth and capital markets to beat consensus.” BMO’s Canadian personal and commercial banking business earned $980 million, up from $849 million in the same quarter last year, helped by an increase in revenue and a lower provision for credit losses, partially offset by higher expenses. Meanwhile, BMO’s U.S. banking business earned $868 million, up from $767 million a year ago. BMO’s wealth management business earned $408 million, up from $392 million in the same quarter last year, while its capital markets business earned $645 million, up from $442 million a year ago. --- Daniel Johnson, The Canadian Press This report by The Canadian Press was first published Aug. 25, 2026.
