Saskatchewan Will Impose a 50% Levy on U.S. Alcohol Starting Sept. 8

The Saskatchewan government said Tuesday it will impose a 50% levy on alcohol made in the United States and imported into the province, including beer, through its provincial ordering system starting September 8, in a move it described as a response to a 50% U.S. tariff on Canadian alcohol that the province said took effect on August 22.

Under the change, any U.S.-produced beer, wine or spirits ordered by retailers through the Saskatchewan Liquor and Gaming Authority’s online system on or after September 8 will be subject to the new charge. The province said the system will be updated to apply the levy automatically.

For beer, the measure creates a direct new cost on American products sold through Saskatchewan’s controlled distribution channel. The provincial government did not provide figures on how much U.S. beer is imported through the system, how the levy will be calculated in practice for each product, how much revenue it expects to collect, or how much retail prices could rise.

The announcement was accompanied by statements from Saskatchewan brewers, distillers and one retailer backing the move. Provincial officials said several local producers had expressed support since the policy was announced last week. The government presented the levy as part of a broader response to trade tensions with the United States and said it continues to press for the removal of tariffs and other trade barriers affecting Saskatchewan exports.

Local industry representatives said the levy is likely to raise shelf prices on U.S. alcohol and could push some consumers toward Canadian-made products. Shawn Moen, chief executive of 9 Mile Legacy Brewing Co. Ltd., said the measure reflects existing preferences for local goods and sends what he called a reciprocal message to American trading partners while focusing on the provincial economy. Troy Verboom, chief executive of Sherwood Co-op, said the change would likely make U.S. products more expensive in stores but leave the final buying decision to consumers.

The province also highlighted support from spirits producers. Meredith Smidt, chief executive of Last Mountain Distillery, said the new trade measure could encourage more Saskatchewan residents to try products made in the province. Black Fox Farm & Distillery said in a statement released by the government that it wants a return to free and fair trade but supports standing behind Canadian businesses while tariffs remain in place.

For brewers, the measure could also affect competition in a market where domestic production already has a large presence. Micheal Brennan, chief executive of Great Western Brewing Company, said the majority of beer sold in Saskatchewan is produced in Canada, though neither he nor the government gave a percentage. He also said the largest beer producers in the market are not necessarily Canadian-owned, arguing that the levy could give buyers another reason to choose products made in Saskatchewan by companies that reinvest their profits locally.

The Saskatchewan release did not announce exemptions for specific categories of U.S. alcohol and did not indicate that beer would be treated differently from wine or spirits. The policy applies based on U.S. origin and affects retailer orders placed through the provincial system from September 8 onward.

The provincial government said it still supports a negotiated solution with the United States and wants the broader Canada-U.S. trade relationship to be strengthened. Until then, Saskatchewan’s decision adds a new barrier for American beer entering the province through official wholesale channels and sets up a likely price gap between U.S. brands and many Canadian alternatives on retail shelves.