California wine exposed again as U.S.-Canada trade fight flares
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- California’s wine industry faces a new blow as escalating U.S.-Canada tariffs and provincial boycotts loom.
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tariffs → expose → blow
- With Canada accounting for more than a third of U.S. wine exports, boycotts have erased roughly $360 million in revenue, forcing some family-owned California wineries to slash staff and scale back.
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boycotts → account → staff
- The trade clash reaches beyond wine, denting California tourism and other industries.
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clash → reach → tourism
California’s struggling wine industry says it expects to take another hit as trade tensions between the U.S. and Canada flare up again.
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tensions → struggle → U.S.
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.
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Canada → announce → 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.
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alcohol → mention → Trump
With wine consumption down, major California wine companies are laying off workers and shuttering production facilities.
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companies → lay → 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.
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she → bear → Prohibition
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.
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exports → say → 2025
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.
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which → say → markets
The boycotts have “erased” roughly $360 million in revenue that the U.S. wine industry would have otherwise earned, according to the report.
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industry → erase → report
“We spent decades building relationships with these Canadian importers, retailers, restaurants, even consumers building a brand in Canada,” Berge said.
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Berge → spend → Canada
G3 Enterprises, which makes wine corks and bottles, announced plans to lay off 66 workers, in yet another hit to California’s wine industry
One Sonoma winery referenced in the report said Canada made up about 85% of its international sales and called the boycotts “devastating.”
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Canada → make → boycotts
Multiple wineries have had to lay off employees because of hits to their business.
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wineries → have → business
“I think the ironic part about this is winemakers are in this business because they love to create a product that brings people together,” Berge said.
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Berge → think → people
“So for it to be caught up in a trade conflict that has nothing to do with wine is really challenging.”
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that → catch → wine
Wine is not the only Californian business that has taken a hit — tourism has also seen a sharp decline in arrivals from Canada.
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tourism → take → Canada
In 2025, visitors from the country dropped by 20%.
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visitors → drop → %
Canada also targeted the agriculture, electronics and transportation equipment industries with its tariffs announced Tuesday, all of which have a presence in California.
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all → target → California
Berge said the longer these boycotts go on, the more difficult it will be for winemakers to reenter the market.
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winemakers → say → market
“The more that we are off the shelves in Canada, the more other countries have the opportunity to come in and take that shelf space, and even when we get back on shelves, that’s just the first step,” she said.
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she → have → shelves
“There’s a lot of work that needs to happen.”
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that → ’ → work
The continued boycotts add to a pile of issues the struggling industry faces.
California wine has already been contending with declining demand and global oversupply issues, leading to downsizing, closures and disposal of tons of grapes.
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wine → continue → grapes
In December, Rep. Mike Thompson (D-St. Helena) introduced a bill that would use taxpayer dollars to reimburse American wine producers for the money they have lost due to tariffs.
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they → introduce → tariffs
But despite bipartisan support, the Specialty Crop & Wine Producer Tariff Relief Act hasn’t seen any movement since.
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Act → see → movement
In the wake of these measures, wineries have worked to expand to other international markets, including in Japan, the UAE and Mexico.
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wineries → work → Japan
But building those relationships takes time, Berge said.
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Berge → build → time
“There’s not going to be any single market that can make up for the loss in Canada,” she said.
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she → go → Canada
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