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Economic Viewpoint

Oil and Tariffs and AI, Oh My!

Why Canadian Consumers Are Proving Resilient Despite Ongoing Headwinds

October 14, 2026
Nom du rédacteur
Randall Bartlett
Deputy Chief Economist

Highlights

  • It’s been a tough couple of years for Canadians. From the US conflict with Iran and tariffs to the rise of artificial intelligence (AI) and interest rates, reprieve from the seeming never-ending stream of external shocks has been hard to find. The total additional cost in 2026 and 2027 could top $2,000 for the average household in Canada.
  • Not all households have been feeling the economic headwinds equally. The most vulnerable households have been dipping into their pandemic-era savings to cover higher costs. At the same time, the most affluent households have seen their wealth continue to grow.
  • Despite the headwinds, the labour market has continued to move forward and supported consumption as the bedrock of economic growth. Federal transfers to low- and middle-income households have helped too.
  • Looking ahead, while real household spending growth is likely to slow as higher prices and trade wars hit consumers where it hurts, it is still likely to underpin respectable growth going forward.

PDF Publication

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Oil and Tariffs and AI, Oh My! (PDF, 735 KB)
NOTE TO READERS: The letters k, M and B are used in texts, graphs and tables to refer to thousands, millions and billions respectively. IMPORTANT: This document is based on public information and may under no circumstances be used or construed as a commitment by Desjardins Group. While the information provided has been determined on the basis of data obtained from sources that are deemed to be reliable, Desjardins Group in no way warrants that the information is accurate or complete. The document is provided solely for information purposes and does not constitute an offer or solicitation for purchase or sale. Desjardins Group takes no responsibility for the consequences of any decision whatsoever made on the basis of the data contained herein and does not hereby undertake to provide any advice, notably in the area of investment services. Data on prices and margins is provided for information purposes and may be modified at any time based on such factors as market conditions. The past performances and projections expressed herein are no guarantee of future performance. Unless otherwise indicated, the opinions and forecasts contained herein are those of the document’s authors and do not represent the opinions of any other person or the official position of Desjardins Group.