Trump tariffs: SAQ considering removing American wines from its shelves

Alcohol products are shown at an SAQ outlet in Montreal, Tuesday, December 7, 2021. THE CANADIAN PRESS/Graham Hughes

Quebec’s premier and his finance minister are not ruling out the idea of removing American wine from SAQ shelves if the United States imposes a 25 per cent tariff on products from Canada on Feb. 1.

However, François Legault said he does not want to “provoke” American President Donald Trump.

“The SAQ is 100 per cent owned by the Quebec government. It’s a matter for the Minister of Finance. We’re not ruling that out, but we’re not there,” Legault said at a news briefing in Saint-Honoré, Saguenay-Lac-Saint-Jean, on Wednesday.

Finance Minister Eric Girard, who is responsible for the SAQ, hinted on Wednesday that this is one of the scenarios being considered in retaliation for the tariffs threatened by President Donald Trump.

“That’s one of the things we’re looking at,” he said, stressing that he was working first and foremost to avoid the imposition of tariffs.

Asked about the issue on Wednesday afternoon, Legault referred to comments made by Donald Trump’s nominee for Secretary of Commerce, Howard Lutnick.

“Lutnick said that if Canada did not resolve its border problem, there would be tariffs as early as Saturday,” he said. “Our first choice is to make sure that we solve the border problem, that we succeed in convincing Trump.”

In 2023-2024, 6.8 per cent of the volume of wine sold at the SAQ came from the United States, in fourth place, far behind France (33.2 per cent), Italy (23.3 per cent) and Spain (10.8 per cent).

Wine expert Natalie MacLean says American wines bring in $85 million per year, and that’s only in SAQ sales.

She says if the government follows through on the threat, Quebecers could lose access to hundreds of popular wines like those from California and Oregon, as well as American bourbon and spirits.

However, Maclean says it could give the SAQ a unique opportunity to expand its sales of homegrown products. Since most of what the SAQ sells is imported, it could expand the sales of Quebec wines, ciders and spirits.

“There’s an unmet demand,” she said, pointing to the fact that wine tourism in Quebec and Ontario attract a lot of Quebec clients.

“We have a rare opportunity to support our own economy at a time of economic uncertainty.”

Wine and spirits add $20 billion per year to Canada’s economy and 85,000 jobs, according to MacLean, yet only 11 per cent of products sold at the SAQ are Canadian.

Though MacLean acknowledged removing American wines from shelves might lead to a decline in sales, she remains optimistic.

Ontario is poised to do the same, and Mclean says the LCBO’s top products are American.

With files from The Canadian Press.