Trade Wars And Tariffs Threaten CA Wine Industry: 'All Of This At Risk'

CALIFORNIA — Trade tensions and sour consumer sentiment in Canada amid shifting tariff talk have left California winemakers grappling with how to navigate an uncertain relationship with some international customers, according to reports.

“Canada is the single most important export market for U.S. wines with retail sales in excess of $1.1 billion annually,” Robert Koch, president and CEO of Wine Institute, said in a prepared statement in February in response to dueling tariff threats between Canada and the U.S.

“Wine is one of the U.S.’ most highly value-added agricultural exports, so any loss of access to the Canadian market will damage the entire U.S. wine sector. Our wineries have spent decades building market share and brand loyalty across Canada. These actions put all of this at risk.”

The 25 percent tariffs briefly went into effect last week, although most are now on hold, according to The New York Times, which reported leadership from each Canadian province had threatened to pull American products from provincially owned liquor stores.

Tariff impacts also extend south of the U.S. border for Golden State winemakers, Spectrum News 1 reported.

“When you look at countries like Mexico, a lot of our glass comes from Mexico and a lot of glass comes from China,” Stuart Spencer, executive director for the Lodi Winegrape Commission, told the outlet. "And so that's going to increase the cost for our producers, all producers, whether they're exporting or not, depending on where they're sourcing their glass.”