With cabinet ministers standing behind him at the E.A. Rawlinson Centre for the Arts in Prince Albert Wednesday, Premier Scott Moe said Saskatchewan will keep American alcohol on store shelves but impose a 50 per cent charge beginning Sept. 8.
Moe initially described the measure as a reciprocal tariff, saying it would mirror the 50 per cent U.S. tariff placed on Canadian alcohol Aug. 22.
The government clarified the measure later Wednesday after the NDP questioned how it would work.
In a statement sent on behalf of Finance Minister Jim Reiter, the province said the 50 per cent charge is a levy that will be charged by and paid to the Saskatchewan Liquor and Gaming Authority (SLGA). It will not be paid to the federal government.
The clarification followed days of pressure from the Saskatchewan NDP to remove American alcohol from shelves altogether.
Trade and Export Development critic Kim Breckner renewed that demand Wednesday morning, hours before Moe’s Prince Albert media availability. Opposition Leader Carla Beck had made the same call Monday.
Moe rejected a government-ordered ban.
“Our government has decided throughout this that we want to leave the choice with the people of Saskatchewan,” he said.
Prince Albert and District Chamber of Commerce CEO Patty Hughes took a similar position in an interview with the Daily Herald earlier this week. Hughes said consumers should decide whether to buy American products rather than have that choice made for them.
“I believe the consumers can make that choice, and we are the ones that should have the power to send that message,” Hughes said.
Moe said American alcohol sales in Saskatchewan have fallen about 40 per cent, while sales of Saskatchewan-made products have increased.
Breckner responded again Wednesday evening after the government clarified the levy, noting Moe had described the measure as a retaliatory tariff during the press conference.
“Whether it’s a tariff, a levy, or a tax doesn’t matter, because there shouldn’t be American booze on Saskatchewan shelves in the first place,” Breckner said.
The alcohol dispute formed part of a broader trade message from Moe, who opened the Prince Albert appearance by quoting former prime minister John Diefenbaker and describing the situation as an “unprecedented challenge” coming from policy decisions at the White House.
Moe said U.S. tariffs currently affect about six per cent of Saskatchewan’s economy. Canadian counter-tariffs affect about 11 per cent of Saskatchewan imports from the United States, or roughly $1.6 billion, he said.
He said Saskatchewan supports targeted Canadian countermeasures, but argued they should be aimed at getting both countries back to the negotiating table.
Moe also rejected suggestions that potash or oil exports could be used as leverage against the United States.
On the possibility of using those resources as leverage in the future, Moe said: “It’s not possible.”
“Why would you put Canadians out of work with a flawed policy?” he said, arguing Canada could lose jobs, market share and investment.
Agriculture Minister David Marit joined Moe at the podium when reporters asked about outreach to American states. Marit said six Saskatchewan representatives will attend a Midwest legislative conference in Minneapolis this weekend. He said agriculture officials he recently met in Wisconsin supported continuing the USMCA trade relationship.
Near the end of the press conference, the Daily Herald asked Moe what “putting Canada first” means for Saskatchewan after he invoked Diefenbaker.
Moe said Saskatchewan produces more than its residents could consume and remains an exporting province dependent on international markets.
“We are an exporting province by our very nature,” he said.
He said putting Canada first means moving past the latest rhetoric and focusing on restoring trade certainty with the United States.
“That, to me, is what putting Canada first looks like.”
arjun.pillai@paherald.sk.ca
