(Image Credit: IMAGN) Bottles of wine line shelves at Basso by PXK in Chappaqua, photographed Jan. 14, 2025.
California – The California wine industry is bracing for significant financial losses after Canada imposed a 25% retaliatory tariff on U.S. wine imports.
The tariffs, which took effect in response to President Donald Trump’s new tariffs on Canadian and Mexican goods, have already led to Canadian stores removing U.S. wines from their shelves.
Stuart Spencer, Lodi wine commissioner, expressed deep concern, stating that the tariffs represent a “hard hit” for wine growers already struggling with declining consumption and wine oversupply. “They’re threatening to pull all the California wine off the shelves, which is going to have a significant impact on all California winegrowers,” Spencer said.
Canada is a crucial export market for California wine, representing a $1 billion market. “It’s a significant piece of our export business,” Spencer emphasized.
The tariffs are also causing apprehension among small businesses in Sacramento. Giang Pham, owner of a Vietnamese restaurant in East Sacramento, voiced concerns about potential price increases. “It’s definitely something that we’re concerned about,” Pham said. He is awaiting information from his suppliers to assess the impact on his business.
Small business owners and the wine industry are still assessing the full extent of the tariffs’ impact. “The biggest concern is Canada,” Spencer said. “All of California agriculture is struggling right now and we need some support from Congress.”
