Saskatchewan Premier Scott Moe says his government will be imposing a 50 per cent reciprocal tax on alcohol from the United States.
Moe said the trade measures will be implemented Sept. 8.
“Given the increased tariffs that the United States of America has put on Canadian and Saskatchewan goods, given the counter-tariffs that are in place, we need to protect ourselves,” Moe said.
The trade action is in response to U.S. tariffs implemented on Aug. 22, which saw a 50 per cent tariff levied on Canadian alcohol headed south.
The premier says the province is not considering pulling U.S. booze from shelves, noting his government is adamant on leaving the choice up to consumers.
“That is a very core value for this government to allow Saskatchewan people to make their own choice,” Moe said, adding that sales of American liquor in Saskatchewan are down 40 per cent.
“I think that that actually sends a much stronger message than any government-ordered ban that could be put in place.”
‘Find a path forward’
Speaking to reporters for the better part of an hour on Wednesday in Prince Albert, Moe said his government fully supports selected counter-tariffs in response to U.S. trade policies, but will draw a line in the sand on export tariffs affecting potash and oil as a way to pressure the U.S.
“Canadians would lose jobs immediately. We, as a nation, would lose investment immediately,” Moe told media.
The premier pointed to what he called “flawed policy” as an exacerbating factor that would make export taxes on western Canadian resources untenable.
“Twenty to 50 per cent of Canadians’ refined petroleum products, our diesel, our gasoline, is produced through products that are produced in Western Canada, travel through the United States of America back into Canada to be refined and utilized,” he explained.
“An export tariff on that Canadian Western oil would most assuredly result in a much higher price on gasoline.”
On the topic of potash, the premier argued an export tax would be devastating to Saskatchewan’s economy and lead to higher fertilizer prices for farmers globally.
Going further, Moe claimed that “flawed policy” and a lack of progress on nation-building projects like port expansions and pipelines has left Canada at a disadvantage as it contends with a full-blown trade conflict with the U.S.
“By implementation of that flawed policy, we have given up some of our economic security. We certainly have given up some of our energy security, which is becoming evident today, and ultimately putting at risk our very sovereignty,” he said.
Moe reiterated that all actions taken in the realm of trade action should be done with the end goal of getting back to the bargaining table with the U.S.
“We are here to be very intentional and direct in our decisions, and at times that will involve reciprocal action,” Moe noted.
“But we are very intentional in our goal, which is for our American counterparts and our Canadian government to return to that negotiating table so that we can find a path forward to a trade agreement.”
Ottawa’s recently announced counter-tariffs on the U.S. will affect 11.3 per cent, or $1.5 billion of U.S. imports to Saskatchewan, according to the province.
‘No roadmap’
At multiple points during his remarks, Moe vowed that his government would analyze the counter-tariff list closely and coordinate with the affected industries to determine impacts and possible supports.
“We will all have choices to make in the days, in the months, and hopefully not the years ahead,” he said.
“There is no roadmap for what we are here facing in this nation or on this continent. But I would commit this government to this; that the Saskatchewan government will be listening to Saskatchewan business owners, to Saskatchewan workers, and most importantly, to the families that live here.”
Flanked by members of his cabinet, Moe evoked the words of former Prime Minister John Diefenbaker, who represented Prince Albert as an MP, to both open and conclude his remarks.
“‘I have one love: Canada. One purpose: Canada’s greatness. One aim: Canadian unity from the Atlantic to the Pacific,’” Moe said. “Those words are as true today for each of us as they were for Prime Minister Diefenbaker 70 years ago.”
Prior to the premier’s news conference, the Saskatchewan NDP called on Moe to take American alcohol off of store shelves to be in line with the majority of other provinces and provide a “clear timeline and immediate supports” for those industries and workers targeted by the U.S.
“Sadly, for much of this trade war, Scott Moe and his government have been disconnected from Team Canada — as demonstrated by his decision to quietly resume the sale of American alcohol mere weeks after taking it off the shelves,” a statement from the opposition read.
“The people of Saskatchewan who will pay more and see disruptions in their lives need to see that the government stands with them at this time of adversity.”
