The Globe and Mail reports in its Wednesday edition that Canada's banks are expected to continue grappling with higher loan loss reserves and lower borrowing activity as U.S. President Donald Trump's trade war threatens to weigh on economic growth. The Globe's Stefanie Marotta writes that the country's six largest lenders report earnings for the second fiscal quarter over the next week, and analysts say continuing trade and economic uncertainty will dampen loan demand and bolster provisions to cover debt that could default. "It should not be a surprise that credit losses are expected to rise due to the tariff risks and modest economic deterioration, but the key question is the extent of the potential increase on performing loan reserves," Bank of Nova Scotia analyst Mike Rizvanovic said in a note to clients. "Based on our conversations with management, we do not expect to see a substantial build." Investors will be looking for clues from the bank's senior leaders on how well the lenders are managing rising financial stress among consumers and businesses, and the direction they expect the economy to take in the latter half of the year. TD Bank will be the first to release Q2 earnings on Thursday. Others follow next week.