Saskatchewan tax on American liquor kicks in for retailers amid trade standoff

Saskatchewan's government plans to impose a new 50 per cent tax on American liquor today, in retaliation for Canada's ongoing trade conflict with the United States. Premier Scott Moe announced the levy on the same day that Canada's tariffs against U.S. goods take effect, as trade negotiations between the two countries hit a stalemate.

The action followed President Donald Trump's 50 per cent tariff on Canadian alcohol and various other products. Saskatchewan retailers who purchase U.S.-produced alcohol through the province's online liquor ordering system will be affected by the new tax. Saskatchewan and Alberta are the only Canadian provinces that do not ban American alcohol products.

Alberta Premier Danielle Smith has not followed Saskatchewan's lead and has said her cabinet will consider implementing a reciprocal tax. Moe emphasized that the province wants to maintain a consumer's right to choose, stating that U.S. liquor will remain available in stores. He noted that the province's economy is benefiting from a 40 per cent drop in American booze sales, as residents have supported domestic products through their purchasing decisions.

Opposition NDP Leader Carla Beck criticized the Saskatchewan Party's strategy as a "weak and gutless response" to Trump's attack on Canada's sovereignty and economy.