Saskatchewan Premier Scott Moe has declared a reciprocal tariff on American alcohol products in response to a 50% tariff imposed by the U.S. on Canadian alcohol exports. The announcement was made in Prince Albert on Wednesday, with the province planning to implement a 50% markup on the price of American alcohol sold to retailers starting September 8.
The levy on American alcohol will be managed by the Saskatchewan Liquor and Gaming Authority, according to provincial officials. Premier Moe emphasized that the decision to purchase U.S. products will remain with Saskatchewan consumers, as the province has no plans to remove American alcohol from shelves.
Following failed trade negotiations, the federal government introduced counter-tariffs on $27.6 billion worth of U.S. goods, with additional support of $7.5 billion for workers and businesses. Premier Moe expressed support for the federal government’s strategic approach to counter-tariffs and criticized the U.S. for disregarding international trade agreements.
The new counter-tariffs account for approximately $1.5 billion of Saskatchewan’s annual imports from the U.S., affecting 11.3% of total imports. Premier Moe emphasized that export tariffs on essential resources like potash and oil are not under consideration, as they could severely impact the province’s economy and job market.
Experts suggest that negotiations with the U.S. may be inevitable, especially considering Saskatchewan’s significant potash reserves. The province’s steel industry is also affected by the counter-tariffs, prompting concerns about job security. Agricultural equipment and parts are among the targeted products, leading to increased costs for farmers.
While supporting the federal government’s measures, Premier Moe stressed the importance of fair trade relationships with the U.S. and emphasized the need for both parties to return to the negotiating table to reach a mutually beneficial trade agreement.