With the introduction of tariffs this year by the U.S., American wine makers are now paying a higher price for all their wine making materials including French oak barrels, glass bottles, corks and even the wine-making equipment itself, such as pumps and de-stemmers. The 15% levy that was imposed on all goods entering the U.S. from the European Union means the cost of wine making supplies increased 15%. For example, each wine barrel now costs California wine makers an additional $100 to $150 US.

California’s Paso Robles Wine Country Alliance said international wine orders were drying up as the aftereffects from President Trump’s trade war resonated around the world. U.S. winemakers are saying that this puts wine producers in high-cost California at an even greater disadvantage.

European wine producers are reducing their amount of American wine purchased. Danish wine stores are boycotting U.S. made wines. In Sweden, the state liquor store, Systembolaget, has seen sales of American wines drop 15%. Portugal as well has sought out alternatives to American wine.

Canada, who purchased 33% of all U.S. wine exports in 2024, has removed American wine and alcohol from liquor store shelves in most provinces. Robert P. Koch, president of California’s Wine Institute, said, “Canada is the single most important export market for U.S. wines, with retail sales in excess of $1.1 billion annually”. In April 2025, U.S. wine exports to Canada decreased 72.5% compared to April of last year. According to the American Association of Wine Economists (AAWE) exports declined by $25.5 million to $9.69 million.

It’s feared that these new anti-American sentiments are unravelling decades of marketing work and relationship building. Former consumers of American wine are now discovering interest in other New World wines, such as Australia, South Africa, South America and Canada.

Oregon is facing the same challenges as California. Oregon’s leading export targets are Mexico, China and Canada, representing about 81,000 jobs that are reliant on that export trade. Close to half of all Oregon wine exports in recent years have gone to Canada; in 2022, that was 73,323 cases of a total export of 162,939.

In April, the US Wine Trade Alliance stated that “restaurants will suffer, domestic producers will face new obstacles in bringing their wines to market, and retailers, importers, and distributors across the country will be placed at serious risk “.

I guess we will all have to wait and see what the longer-term effects of this trade war will be. However, I tend to agree with the economists who conquer that a trade war is a war that no one wins.

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