California wine exposed again as U.S.-Canada trade fight flares

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Set us as preferred California’s struggling wine industry says it expects to take another hit as trade tensions between the U.S.and Canada flare up again.President Trump announced tariffs of up to 50% on Canadian goods this week and Canada responded with retaliatory tariffs on $20 billion worth of American products.Though wine was not explicitly mentioned, American alcohol has been the target of boycotts imposed by several Canadian provinces since last March in response to earlier tariffs on Canadian goods by Trump.

Business With wine consumption down, major California wine companies are laying off workers and shuttering production facilities.Californian wines have borne the brunt of the tit-for-tat — and now these local, often family-owned businesses expect further losses, said Julie Berge, vice president of communications at Wine Institute, which represents California wineries.“It has been the most significant disruption to U.S.wines since the Prohibition,” she said.At the one-year mark of the restrictions, a Wine Institute report said U.S.

wine exports totaled $805 million in 2025, down 35% from 2024.Berge said 80% of that decrease was because of Canada, which makes up 36% of the U.S.

wine export market, more than the EU, U.K.and China markets combined.The boycotts have “erased” roughly $360 million in revenue that the U.S.

wine industry would have otherwise earned, according to the report.“We spent decades building relationships with these Canadian importers, retailers, restaurants, even consumers building a brand in Canada,” Berge said.“And so there’s been real damage on both sides.”For some California winemakers, the impact was even greater.

Business G3 Enterprises, which makes wine corks and bottles, announced plans to lay off 66 workers, in yet another hit to California’s wine industryOne S...