Ottawa, April 18, 2025: The American wine industry is reeling from a sharp economic blow as a result of escalating trade tensions with Canada. In retaliation to tariffs imposed by the Trump administration, Canadian provinces have removed American alcoholic beverages—including wine—from store shelves, triggering a projected $1 billion loss for U.S. wineries.
California, the heart of the U.S. wine export business, has taken the biggest hit. Wineries in the state now face overstocked inventories and slumping export orders due to Canada’s sudden restrictions. Analysts say the financial damage will worsen the longer these trade barriers persist.
This fallout is just one chapter in a broader economic standoff. Other U.S. industries, from agriculture to manufacturing, are also beginning to feel the sting of Canada’s response. Calls are growing on both sides of the border for a diplomatic fix before the damage deepens further.
