Exports Plunge Amid Trade Tensions (Image Credits: Unsplash)
One year after President Donald Trump imposed broad tariffs on imports, American wine producers continue to grapple with retaliatory measures that have eroded their overseas markets.
Exports Plunge Amid Trade Tensions
United States wine exports dropped sharply in 2025, falling 33.5 percent from $1.3 billion in 2024 to $850 million.[1] The steep decline marked a $428 million loss for the industry, with producers pointing to global trade disputes as a primary factor.
Canada, once the largest market for American wine, saw exports collapse by 76.8 percent.[1] Monthly shipments that averaged tens of millions dwindled to under $1 million in key periods. California beverage exports, including wine, fell more than 32 percent to $880 million through October 2025.[2]
Industry leaders noted that the tariffs, intended to shield domestic producers from foreign competition, instead provoked backlash abroad. Carlton McCoy, CEO of Lawrence Wine Estates, described a “generally negative sentiment” toward all US-made products, not just wine.[1]
Canada Leads Retaliatory Charge
Canadian provinces responded aggressively to US tariffs by removing American wines and spirits from store shelves starting in early 2025.[3] Only Alberta and Saskatchewan permitted sales, while others seized inventory and halted new orders. Ontario, a major buyer with nearly $1 billion in annual American alcohol purchases pre-tariffs, joined the boycott.
Small producers suffered acutely. Todd Cavallo of Wild Arc in New York’s Hudson Valley lost $10,000 in canceled orders and took extra work to cover bills.[3] Toronto importer Rogers & Company faced $1.5 million in seized California wines, leading to layoffs and office closures. US wine exports to Canada plunged 94 percent overall.[3]
- Provinces froze inbound shipments, stranding cases of US wine.
- Consumer campaigns promoted local alternatives over American imports.
- Spirits exports dropped 85 percent, underscoring alcohol’s role as a trade war target.
- Temporary sales of seized stock in late 2025 benefited charities but signaled no quick return to normalcy.
Supreme Court Ruling Shakes Up the Landscape
The US Supreme Court struck down the tariffs last week in a 6-3 decision, ruling that President Trump lacked authority under the International Emergency Economic Powers Act.[2] Chief Justice John Roberts emphasized that such powers belong to Congress during peacetime.
Trump vowed to impose new levies using Section 122 of the 1974 Trade Act, up to 15 percent for 150 days. Producers welcomed the ruling but expressed caution over ongoing uncertainty. Many Canadian restrictions persist, with industry groups urging swift resolution.[4]
Beyond Canada, Danish stores boycotted US wines, and Swedish sales fell 15 percent.[5] These actions amplified the hostility many producers reported after one year of tariffs.
Lessons from a Year of Trade Friction
American winemakers entered 2025 amid declining domestic consumption, exacerbated by health trends. Tariffs offered no buffer, as retaliatory moves overshadowed any potential import price hikes. Jesse Katz of Aperture Cellars noted minimal export reliance cushioned his business, but others faced dire straits.[1]
| Market | 2024 Exports | 2025 Change |
|---|---|---|
| Overall US Wine | $1.3B | -33.5% |
| Canada | Major share | -76.8% |
| California Beverages | $1.3B (10 mo.) | -32% |
Key Takeaways:
- Retaliation outweighed domestic protection for exporters.
- Small producers bore heavy losses from sudden market closures.
- Legal wins provide relief, but new tariffs loom.
Trade wars exact a hidden cost on sectors like wine, where relationships span generations. As tensions ease or escalate, the path forward hinges on diplomacy. What impacts have you seen in your local wine scene? Share in the comments.
