The Globe and Mail reports in its Thursday edition that Bank of Montreal and National Bank of Canada expect the Canadian economy to face further challenges, with uncertainty over tariffs putting pressure on consumers and businesses, even as the U.S. continues to rebound. The Globe's Stefanie Marotta writes that Canadian banks both reported higher first-quarter profit Wednesday that beat analysts' estimates. BMO's profit was bolstered by the U.S. division, a major market for the bank -- making up 40 per cent of its earnings this quarter -- and a key factor in ambitions to rejig its business and bolster share price. "Trade issues between Canada and the U.S. remain unresolved, and the USMCA renegotiation presents significant uncertainty. Given these factors, we continue to anticipate a softer economic environment in Canada," BMO chief risk officer Piyush Agrawal said during a conference call, referring to the U.S.-Mexico-Canada Agreement on trade. National Bank chief executive officer Laurent Ferreira said the geopolitical environment continues to weigh on the economy, and trade tensions have hindered business investment. "Our economy must take a different strategic direction," Mr. Ferreira said during a conference call.