Saskatchewan tax on American liquor kicks in for retailers amid trade standoff
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REGINA – Saskatchewan entered the Canada-U.S. trade war Tuesday, slapping a retaliatory tax on American booze.
Premier Scott Moe says the move is regrettable but necessary.
“Saskatchewan didn’t ask for this trade fight, but we will stand up for our people and industries,” Moe said in a statement Tuesday.
He said it was necessary to respond to what he called “unjustified tariffs” from the United States.
Moe previously announced his province would implement a 50 per cent fee on American alcohol when Canada’s reciprocal tariffs take effect. Those tariffs came into force early Tuesday, targeting close to $28 billion in U.S. goods.
Moe said both countries must remember that tariffs and counter-tariffs increase costs for businesses and consumers on both sides of the border.
He urged negotiators for both countries to return to the table to get the best deal.
The two countries remain locked in a trade spat that began last month when U.S. President Donald Trump implemented a 50 per cent tariff on Canadian liquor and a range of other goods.
In Saskatchewan, the levy hits any U.S.-produced alcohol purchased through the Saskatchewan Liquor and Gaming Authority’s online ordering system, used by retailers across the province.
Unlike other Canadian provinces, Saskatchewan and Alberta do not have a ban on American alcohol products.
Service Alberta Minister Dale Nally, who oversees alcohol policy in the province, said Tuesday that Alberta following Saskatchewan’s lead is a “live conversation,” though no decision had been made by Premier Danielle Smith’s cabinet.
Nally was hesitant about putting a tax on U.S. booze, considering a number of Alberta breweries and distilleries sell their products south of the border.
He said many do so because it’s easier to get their products on shelves in the U.S. than in other provinces.
“Since the Americans are the only ones in North America that are really taking our product, do we want to put a tariff on the one market that embraces our producers?” he said in an interview.
Later Tuesday, U.S. President Donald Trump announced he had signed several executive orders to bar the import of certain Canadian goods, including alcohol.
Moe has said U.S. liquor would remain on store shelves, because the province doesn’t want to limit the public’s ability to choose.
“That is a very important core value for this government,” he said in late August.
He added that residents have shown support for Canadian products with their wallets, as American booze sales in Saskatchewan are down by about 40 per cent.
Opposition NDP Leader Carla Beck called the Saskatchewan Party government’s move a “weak and gutless response” to Trump’s attack on Canada’s sovereignty and economy.
This report by The Canadian Press was first published Sept. 8, 2026.