Saskatchewan Premier Scott Moe has announced a retaliatory levy on U.S. alcohol products.
“There is a 50 per cent tariff that was applied to Canadian alcohol exports into the U.S., and so on Sept. 8, Saskatchewan will reciprocate that tariff on American alcohol that will come into our province,” Moe said at a news conference in Prince Albert on Wednesday.
The province clarified Thursday that it will put a “50 per cent markup” on the price of American alcohol when selling it to retailers.
The province told CBC the alcohol levy will be charged by and paid to the Saskatchewan Liquor and Gaming Authority, not paid by SLGA.
The premier said the province is still not considering pulling U.S. booze from shelves. He said his government will leave the choice to buy or not buy the U.S. products up to Saskatchewan consumers.
On Tuesday, Ottawa announced counter-tariffs on $27.6 billion of U.S. goods. It also unveiled $7.5 billion in support for workers and businesses.
Moe said the province supports the federal government’s “focused and targeted approach in its counter-tariffs on U.S. imports,” after trade negotiations fell apart over the weekend.
He said the U.S. was “encroaching on international trade agreements,” and called that unacceptable. Moe said Saskatchewan has been working to build trade relationships outside of North America, and that those efforts have been successful.
The premier said the new counter-tariffs cover about $1.5 billion, or 11.3 per cent, of Saskatchewan’s annual imports from the U.S. He said the province is analyzing the counter-tariff list closely and is working with “affected industries to determine its potential impact on jobs and consumer prices.”
On Wednesday, Moe made it clear to reporters that export tariffs affecting potash and oil are off the table.
“What we as a province cannot and will not support is any kind of export tariff on our natural resources or any resources that are being exported to the U.S. or through the U.S. to other areas of the world,” he said.