The Globe and Mail reports in its Wednesday edition that BMO and Scotiabank are setting aside provisions for potential loan losses to mitigate the threat of tariffs and escalating tensions with the United States as clients start pull back from borrowing. The Globe's Stefanie Marotta writes that in December, Canada's largest lenders said that higher-for-longer interest rates, along with geopolitical tensions, boosted risks in their client portfolios. The growing threat of a trade war has escalated these threats. While both banks said Tuesday it is premature to assume the severity or duration of a looming trade dispute, they considered potential developments when determining their provisions for credit losses. On Tuesday, Scotiabank and BMO reported earnings for their first quarter ended Jan. 31, which means the banks' assessments do not include President Donald Trump's many executive orders and updated tariff proposals. Scotiabank's assessment included the risk of the U.S. levying a 5-per-cent tariff on half of Canadian imports and 10 per cent on half of Mexican imports. Scotiabank set aside $1.2-billion in provisions for credit losses. BMO set aside $1.01-billion in provisions -- slightly lower than analysts expected.