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Saskatchewan Premier Scott Moe has announced counter-tariffs on U.S. alcohol products, matching the U.S. tariffs of 50 per cent.
At a news conference in Prince Albert Wednesday, Moe said the counter-tariffs will take effect Sept. 8.
The U.S. implemented a 50 per cent tariff on a range of Canadian alcohol products on Aug. 22.
However, the premier said the province is still not considering pulling U.S. booze from shelves. He said his government will leave the choice to buy or not buy the U.S. products up to Saskatchewan consumers.
On Tuesday, Ottawa announced counter-tariffs on $27.6 billion of U.S. goods. It also unveiled $7.5 billion in support for workers and businesses.
Sask. backs federal counter-tariffs on U.S. imports
Moe said the province supports the federal government’s “focused and targeted approach in its counter-tariffs on U.S. imports,” after trade negotiations fell apart over the weekend.
Premier Scott Moe called for Canadian unity and support for the federal government’s counter-tariffs on the United States, but said Saskatchewan will not support export taxes on potash or oil.
He said the U.S. was “encroaching on international trade agreements,” and called that unacceptable. Moe said Saskatchewan has been working to build trade relationships outside of North America, and that those efforts have been successful.
The premier said the new counter-tariffs cover about $1.5 billion, or 11.3 per cent, of Saskatchewan’s annual imports from the U.S. He said the province is analyzing the counter-tariff list closely and is working with “affected industries to determine its potential impact on jobs and consumer prices.”
On Wednesday Moe made it clear to reporters that export tariffs affecting potash and oil are off the table.
“What we as a province cannot and will not support is any kind of export tariff on our natural resources or any resources that are being exported to the U.S. or through the U.S. to other areas of the world,” Moe said.
“We cannot in any way support the adding of export tariffs on a product like oil,” he said, calling it an unsustainable hit to the Saskatchewan and Alberta industries in particular.
Moe said Canadians would lose jobs immediately if that were to happen.
”An export tariff on oil would have a far greater impact on those that are living in Eastern Canada than it would even on those that are directly working in the energy industry,” he said.
Saskatchewan Premier Scott Moe says while he supports Ottawa’s latest plans for reciprocal tariffs on some U.S. products, he will not support export tariffs on Canadian natural resources. ‘Canadians would lose jobs immediately,’ said Moe.
The premier also said an export tax on potash would be “devastating” for Saskatchewan’s economy, adding it would lead to much higher fertilizer costs, affecting farmers all over the world.
Meanwhile, U.S. steel and aluminum are affected by the counter-tariffs. The province’s steel industry wants to ensure its workers’ jobs are protected.
“I welcome the announcements from the federal government that we are gonna take targeted retaliatory measures and we are going to support businesses and workers that are impacted,” said Scott Lunny, Western Canada director for the United Steel Workers Union.
Agricultural equipment is also targeted by the counter-tariffs.
The Agricultural Producers Association of Saskatchewan (APAS) said farmers have no choice but to pay the price for parts and machinery.
“Going into the harvest season now, producers are going to be forced to pay a really high price for parts because they need them to keep the equipment running,” said APAS president Bill Prybylski.
Province reviewing support measures for affected businesses, workers
Moe said the province is also reviewing the federal government’s support measures to ensure they work for businesses and workers.
“While this is the appropriate response to the latest round of U.S. tariffs, we can never lose sight of the fact that all tariffs hurt businesses, jobs, consumers and families on both sides of the border, and our ultimate goal must be to get back to a free and fair trade relationship with the U.S., as we have enjoyed for many years,” Moe said.
Ultimately, Moe told reporters in Prince Albert that Canadians “need to have one goal”: to return to the negotiating table and make a deal with their largest trading partner.
“With all of the very intentional actions that we take, the goal has to be for both parties to return to the table,” Moe said, adding the ideal outcome would be a trade arrangement that’s good for Canadians and Americans.
