The fallout from the Iran war continues to spread across the Canadian economy , with car sales down in all 10 provinces last month due to trade pressures, while higher prices at the pump also dissuaded people from making what amounts to a major purchase.

“March was a challenging month for the Canadian new light vehicle sales market,” DesRosiers Automotive Consultants Inc. said in a report, adding that sales contracted by double digits in seven provinces.

Sales in Alberta fell 11.1 per cent from a year ago and they dropped nearly 20 per cent in Newfoundland and Labrador. Overall, sales in Canada fell 8.2 per cent in March from March 2025.

In the first quarter, Newfoundland, Prince Edward Island and

Saskatchewan were the main laggers, with declines of 16.4 per cent, 13.4 per cent and 11 per cent, respectively, from a year ago.

“The breadth of the weakness this March and the disappointing (seasonally adjusted annual rate) of 1.85 million are undoubtedly concerning, with both trade pressures and high

gas prices weighing on the market,” Andrew King, managing partner at DesRosiers, said in a press release.

The United States-Israel war on Iran started on Feb. 28 and the Iranians shortly thereafter closed the

Strait of Hormuz , through which oil and natural gas exports traverse to markets in Europe and Asia from countries including Saudi Arabia. That led to oil prices jumping around the world and higher gas prices.

The average price at the pump in Canada is $1.70 per litre, including taxes, up from $1.28 at the start of 2026, but down from average highs of around $1.90 recorded in early April, according to Kalibrate Technologies Ltd. On Monday, a temporary pause of the federal excise tax on gas came into effect, which shaved roughly 10 cents off the cost per litre.

Other countries are also feeling effects from the spike in energy prices for industry and households. For example, Germany cut its growth forecast for this year in half and the I

nternational Monetary Fund last week cut its forecasts for global growth and said the Iran war could tip the world economy into recession if it isn’t resolved quickly.

On Monday, the Bank of Canada in its surveys for first-quarter business and consumer outlooks said the conflict has somewhat derailed improving expectations for the economy and

inflation . The Business Outlook Survey previously said there were improving investment and employment intentions prior to the start of the war and stable inflation expectations. But the central bank said one-year business inflation expectations have risen to 3.8 per cent from three per cent after it resurveyed businesses after Feb. 28 that were most exposed to the conflict.

Consumers were similarly reinterviewed for the Canadian Survey of Consumer Expectations, and they expect the war to hurt the economy and increase inflation.

The Bank of Canada keeps a sharp watch on inflation expectations because if they begin to rise, they could end up translating into higher prices, forcing the central bank to hike

interest rates . “Roughly one in four households suggested that they were already cancelling or delaying spending in some areas as a result (of the war),” Andrew Grantham, a economist at CIBC Capital Markets, said in a note on the consumer outlook survey.

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When oil prices surge, the Canadian dollar usually strengthens — but that dynamic has shifted.

Since the war in the Middle East erupted in late February, the loonie slipped 0.2 per cent against the United States currency as West Texas Intermediate crude oil rose roughly 34 per cent. The divergence prompted traders to boost their bets against the Canadian dollar. Meanwhile, the Norwegian krone and Australian dollar, other commodity-linked currencies, have rallied in that period.

Traders have been souring on the loonie, with hedge funds turning the most bearish on the currency this year in the week through April 14. — Bloomberg

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Read the full story here. It is that time of year when taxpayers cross their fingers and hope for a tax refund. Canada Revenue Agency (CRA) data for the 2026 tax-filing season through April 20 show about 62 per cent of tax returns filed resulted in a refund. The average refund was about $2,248. Taxpayers with a balance owed an average of $5,775. But a surprising category for chronic CRA debtors on April 30 is retirees. Read more here.

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Today’s Posthaste was written by Gigi Suhanic with additional reporting from Financial Post staff and Bloomberg.

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