Saskatchewan Premier Scott Moe has declared a reciprocal tariff on American alcoholic beverages in response to the 50 percent tariff imposed on Canadian alcohol exports by the U.S. The announcement was made during a news conference in Prince Albert, where Moe stated that the new levy will be applied starting on September 8.

The province clarified that a “50 percent markup” will be added to the price of American alcohol sold to retailers in Saskatchewan. The levy collected will be managed by the Saskatchewan Liquor and Gaming Authority.

Despite the tariff, the province has no plans to remove U.S. alcohol from shelves, leaving the decision to purchase these products to the consumers. Ottawa also recently announced counter-tariffs on $27.6 billion worth of U.S. goods, with additional support of $7.5 billion for affected workers and businesses.

Premier Moe expressed support for the federal government’s targeted approach with the counter-tariffs, criticizing the U.S. for breaching international trade agreements. He emphasized Saskatchewan’s efforts to diversify trade relationships beyond North America, noting their success in doing so.

The counter-tariffs cover approximately $1.5 billion, or 11.3 percent, of Saskatchewan’s annual imports from the U.S. The province is closely examining the impact of these tariffs on jobs and consumer prices in collaboration with affected industries.

Moe made it clear that export tariffs affecting potash and oil are not being considered by the province. He highlighted the devastating impact such tariffs would have on the local economy and emphasized the importance of maintaining trade relationships without imposing additional taxes on essential resources like oil and potash.

Experts suggest that negotiations with the U.S. may be necessary in the future, particularly regarding the export of potash, a critical resource for agricultural states in the U.S. The potential implications of implementing export duties on potash were also discussed, with concerns raised about the impact on global fertilizer costs and farming practices.

Industries like steel and agriculture are directly affected by the counter-tariffs, with stakeholders expressing concerns about job security and rising costs for essential equipment and machinery. Premier Moe underscored the importance of reviewing and implementing effective support measures for businesses and workers impacted by the tariffs.

While acknowledging the necessity of the current response to U.S. tariffs, Moe emphasized the importance of fostering a free and fair trade relationship with the U.S. to benefit both countries. He urged a return to the negotiating table with the aim of reaching a mutually beneficial trade agreement.