Saskatchewan Premier Scott Moe has announced a new measure in response to the 50 percent tariff imposed on Canadian alcohol exports to the United States. During a press conference in Prince Albert, Moe stated that starting on September 8, Saskatchewan will impose a reciprocal tariff on American alcohol entering the province by adding a 50 percent markup on its retail price.
The province specified that the levy on American alcohol will be collected by the Saskatchewan Liquor and Gaming Authority rather than being paid directly by SLGA. Moe emphasized that while the province will not remove U.S. alcohol from shelves, the decision to purchase these products will be left to Saskatchewan consumers.
In support of the federal government’s counter-tariffs on U.S. imports, Moe praised the targeted approach taken after trade negotiations collapsed over the weekend. He criticized the U.S. for breaching international trade agreements and stressed Saskatchewan’s efforts to strengthen trade relations beyond North America, which have proven successful.
The retaliatory measures are expected to impact about $1.5 billion, or 11.3 percent, of Saskatchewan’s annual imports from the U.S. The province is closely examining the counter-tariffs’ effects and collaborating with affected industries to assess potential impacts on employment and consumer costs.
Moe made it clear that any export tariffs on natural resources like potash and oil are unacceptable. He highlighted the detrimental effects such tariffs would have on industries in Saskatchewan and Alberta, warning of immediate job losses for Canadians. Additionally, he emphasized the negative consequences of export taxes on potash, stating that it would significantly raise fertilizer prices, affecting farmers globally.
Experts suggest that negotiations with the U.S. may be necessary in the future, especially considering Saskatchewan’s significant potash reserves vital for American agricultural states. The province’s steel industry is also affected by the counter-tariffs, with efforts to safeguard jobs underway.
Agricultural equipment is another sector impacted by the counter-tariffs, leading to increased costs for farmers needing parts. The province is currently evaluating federal support measures to ensure they benefit businesses and workers while aiming for a return to fair trade relations with the U.S.
Moe emphasized the importance of both countries returning to the negotiating table and reaching a mutually beneficial trade agreement. The goal remains to establish a trade arrangement that benefits both Canadians and Americans.
