The Globe and Mail reports in its Saturday edition that U.S. President Donald Trump's turbulent tariff and policy manoeuvres are upending markets, hiking risk of loan defaults and stalling business investment. The Globe's Stefanie Marotta writes, however, that the hit to Canada's banks has been more muted than feared. In the second quarter, RBC created a new trade disruption scenario, which assesses the potential for a recession because of escalations in the global trade war and geopolitical risks that could cause severe unemployment, inflation, supply chain disruptions and asset price decreases. RBC chief executive officer Dave McKay said management knew the higher-than-expected provisions would cause the lender's profit to miss analyst estimates, but that they preferred to take a conservative approach in anticipation of a volatility. Some banks also disclosed tariff exposure in their loan portfolios. At CIBC, chief financial officer Robert Sedran said they looked at more than 2,000 individual clients to assess the likelihood of revenue and cost pressure due to tariffs. The bank's loans vulnerable to tariff risks amount to 4 per cent of the total book; less than 1 per cent were assessed as high risk.