Saskatchewan Announces Retaliatory 50% Tax on US Alcohol in Response to Trump Tariffs

Saskatchewan Premier Scott Moe speaks as he arrives for a first ministers meeting Jan. 15, 2025, in Ottawa. (Photo: Justin Tang/The Canadian Press via AP)

Saskatchewan is imposing a 50% tax on U.S. alcoholic beverages in retaliation for new American tariffs on Canadian beer, wine and spirits, Saskatchewan Premier Scott Moe announced Wednesday, saying the province’s new tax will match the 50% tariff imposed by the Trump administration on hundreds of Canadian products.

The decision is particularly significant for the U.S. alcohol industry because Saskatchewan is one of only two Canadian provinces where American wine and spirits remain widely available at retail, with Alberta being the other.

The other eight provinces removed U.S. alcohol from store shelves in March 2025 in response to tariffs imposed by President Donald Trump on Canadian goods.

The latest U.S. tariffs took effect Saturday and cover Canadian alcohol among other products. The move came after months of escalating tensions between the longtime trading partners.

Canada’s provincial governments control alcohol distribution, giving premiers significant influence over whether American spirits, wine and beer can reach consumers.

The dispute has already caused a dramatic decline in U.S. alcohol exports to Canada. According to the Distilled Spirits Council, U.S. spirits exports to the country fell more than 70% following the provincial bans, while wine industry groups have reported similarly steep losses.

For American beverage companies, the stakes are significant. Canada has historically been one of the largest export markets for U.S. wine, beer and spirits, making continued restrictions a major problem for producers already dealing with weaker alcohol consumption and higher costs.

The Saskatchewan tax now threatens to further complicate efforts to restore that market.