Saskatchewan will impose a 50 per cent levy on American alcohol imports starting Sept. 8, retaliating against the United States tariff on Canadian alcohol that took effect Aug. 22.
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The provincial government announced the measure Aug. 27, saying it is intended to send a clear signal that Saskatchewan will stand up for its industries and exporters while supporting efforts to restore fair trade between Canada and the U.S.
Finance Minister Jim Reiter said Saskatchewan prefers free trade but will act to protect local producers and exporters from U.S. tariffs.
The levy will apply to U.S.-origin alcohol imported into Saskatchewan through the Saskatchewan Liquor and Gaming Authority online ordering system used by retailers. Any American-produced alcohol ordered by retailers as of Sept. 8 will be subject to the 50 per cent levy.
The measure affects consumers on both sides of the Border City, where liquor pricing is set by SLGA retail operations in both Alberta and Saskatchewan.
The province advocates for removing trade barriers to protect Saskatchewan exports and Canada-U.S. trade.
Glenn Valgardson, CEO of Pile O Bones Brewing Co, said Saskatchewan breweries are already feeling the impact of the trade dispute through higher costs.
“We are feeling the impact of the trade dispute through higher costs,” Valgardson said. “We appreciate the Premier standing up for Saskatchewan businesses and ensuring our province has a strong voice.”
“Our objective is not to prolong a trade dispute,” Reiter said. “Our objective is to defend Saskatchewan’s interests and get back to tariff-free trade as quickly as possible.”
The U.S. imposed its 50 per cent tariff on Canadian alcohol Aug. 22. Saskatchewan’s response follows similar measures from other provinces, including complaints from American distillers about Canadian provinces favouring local alcohol producers.
The SLGA online ordering system will be updated to reflect the levy effective Sept. 8.
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