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Saskatchewan tax on American liquor kicks in for retailers amid trade standoff
The levy applies to retailers and online orders as American booze sales in Saskatchewan are down about 40%, officials said.
On Tuesday, Saskatchewan's government began imposing a 50% fee on American alcohol through the Saskatchewan Liquor and Gaming Authority's online ordering system, a retaliatory measure amid the ongoing Canada-U.S. trade war.
This action follows President Donald Trump's implementation of a 50% tariff on Canadian liquor and other goods. Prime Minister Mark Carney responded by promising $28 billion in reciprocal, dollar-for-dollar retaliatory tariffs against the United States.
Saskatchewan Premier Scott Moe stated U.S. liquor will remain on shelves to preserve consumer choice, while American booze sales dropped by about 40% and sales of Saskatchewan-made products increased simultaneously.
Opposition NDP Leader Carla Beck called the move a "weak and gutless response" to Trump's attack on Canada. Alberta Premier Danielle Smith has not followed Saskatchewan's lead, though her cabinet is considering the proposal.
Moe defended the fee as a "very important core value," arguing "I think that actually sends a much stronger message than any government-ordered ban." The approach prioritizes market forces over prohibition.