Despite Thursday’s partial tariff reprieve, Saskatchewan still cutting off US alcohol sales and procurement

 

REGINA – In retaliation for President Donald Trump’s blanket tariffs on Canadian exports, Saskatchewan is joining other provinces in shutting down imports of American alcohol.

It’s been a fast moving story. The afternoon of Thursday, March 6, President Trump took action to not apply tariffs to products covered under the United States-Mexico-Canada free trade agreement (USMCA, alternatively known as CUSMA) until April. 2. That includes reducing the tariff on potash from 25 per cent to 10 per cent. Late on Thursday Canada announced it was not proceeding with planned $125 billion in retaliatory tariffs until April 2, according to the Canadian Press.

Premier Scott Moe’s office said in an emailed statement to Pipeline Online, “We are seeking clarification on the details of the pause announced today, specifically which export products are now exempt from tariffs and which will still have tariffs applied.  While any easing of US tariffs is welcome news, the ongoing uncertainty around the tariff situation is hurting businesses and consumers on both sides of the border.  For now, the measures announced yesterday by Premier Moe regarding US alcohol and procurement remain in effect.”

And just what were those measures?

Moe announced on Wednesday, March 5 that the Government of Saskatchewan has directed Saskatchewan Liquor and Gaming Authority to stop purchasing US-produced alcohol and has directed that goods and services procured by the Government of Saskatchewan prioritize Canadian suppliers, with the goal of reducing or eliminating US procurement.

Any future government capital projects have been paused and for those projects in process, contractors will be asked to report on American products and reduce that amount.

“These extraordinary measures are a direct response to President Trump’s unjustified tariffs and a direct attack on the Canadian economy,” Moe said. “This decision was not made lightly, but the Government of Saskatchewan has always and will always stand up for Saskatchewan’s interests and protect our jobs, our economy and our residents.”

Liquor retailers will no longer be able to order US-produced alcohol, however they may still choose to sell their remaining inventory. This approach defends the interests of Saskatchewan’s economy while avoiding negative impacts on Saskatchewan’s liquor retailers who have already purchased US products.

Lotteries and Gaming Saskatchewan has been directed to source from other suppliers the $43 million of VLT and slot machines that are to be upgraded this year and are currently procured from the United States.

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“The United States has always been Saskatchewan’s largest and most important trading partner, but when they attack our economy, we have to push back,” Moe said. “Our exports lower the cost of living for millions of Americans and support jobs on both sides of the border. Our goal is to end these tariffs and retaliatory measures as soon as possible so that we can resume our long standing, mutually beneficial relationship.”

The Government of Saskatchewan will also expect school divisions, municipalities and post-secondary institutions to adopt similar procurement policies that prioritize Canadian goods and services.

Moe said there are really three implied tariffs from Trump on Canadians. “The first is related to fentanyl and border security. Now that’s the tariff that is in place today and came into place this week. The second tariff, the indication is that it would be looked at and a decision made on March the 12th, which would impact steel and aluminum. And the third would be the reciprocal tariff that is more globally focused.”

He said our goal is to have a no-tariff environment. And if they do end up in effect, that would be for a minimum, limited length of time.

Moe spoke about tariffs on Canadian potash (25 per cent on Wednesday, when Moe was speaking). He pointed out nearly all of which comes from Saskatchewan, is being noticed as a hardship on American farmers. He noted one senator has been making comments regarding potash. Moe said 85 to 90 per cent of US potash comes from Saskatchewan, as does 35 per cent of global supply.

He also pointed out the discrepancy of tariff levels for energy, being much lower at 10 per cent instead of the overall 25 per cent, as a “very tangible impact of those relationships.”

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“And I can assure you that that is, is and was part of that discussion, and will continue to be part of that discussion. The importance of $15 billion of Saskatchewan oil, never mind the oil that comes from Alberta, going down into the Midwest, into places like Illinois, Ohio, Louisiana and Texas, and providing the opportunity for people to work in those refineries and providing energy security to the United States of America,” he said.

Moe credited the federal government for its plan of targeted tariffs as opposed to dollar-for-dollar tariffs in its response to American tariff actions.

He said the 13 premiers had discussed a number of non-tariff measures both the federal and provincial governments could take. And one of those was shutting down sales of American alcohol. Shutting down all forms of government procurement from American firms, wherever possible, is another. Indeed, Alberta announced similar measures on the same day.

Moe said, “But it’s also important for us to remember this our most significant trading partner has, and when the dust settles, will still be, the United States of America. Our most significant Ally has and will continue to be when the dust settles, our most significant ally in the world.

“That’s not to say that our relationship isn’t changing before our very eyes, but we do export as the province of Saskatchewan, over 55 per cent about $29 billion of our exports, do go to the United States. About 80 per cent of our imports also come from the United States. We, very much as a government, have committed not only to deepening the trade relationship with the United States of America, but diversifying our trade relationship with other countries around the world.”

He noted a provincial government focus since 2007 of international trade missions and trade investment offices around the world.

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“I would say that that investment and those trade missions, alongside industries and our intent, very intentional effort to build that province to nation, trading relationship has been criticized at times on the floor of this legislature and at times even publicly in the media. Well, thankfully, we have withstood any of that criticism. We’ve continued to make that investment and create the contacts that we have, to rely on those contacts during times of unrest.”

“We’d always said that investment was one, that investment was there to protect the market share that we have in countries of interest. And I would say there’s no larger country of interest than the United States of America. Two, it was so that we had people on the ground to identify when we had opportunities to expand that market share, and we’ve seen that happen in many markets around the world, including in the United States of America. And three, to ensure that we have relationships like we do have built for very tumultuous and trying times like what we see here today.

“And so, Saskatchewan is one of the most diversified provinces and least dependent on the United States of America for our exports. That being said, they are our largest trading partner, our largest ally. And it’s important for all, each of us, to remember that as we go through what is admittedly a very challenging conversation with the president and his administration, but we will find our way through it.”

Earlier in the day, prior to Moe’s press conference, the NDP opposition accused the Sask. Party government of having no plan compared to other provinces.

“How is it that everyone saw the tariffs train rolling down the tracks a mile out except for the Sask. Party? Who is in charge over there?” asked Aleana Young, Shadow Minister for Jobs and the Economy, said in a 11 a.m. press release.

Late in the evening of May 6, NDP Leader Carla Beck posted on X, “This isn’t about smaller tariffs. This isn’t about tariffs in 30 days. This is about NO tariffs. We can’t build Saskatchewan’s future with a gun to our heads. Stand strong, Canada. Clearly we’re having an impact south of the border.”

 

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