The U.S. wine industry is facing a devastating combination of global trade retaliation and domestic economic headwinds, with experts warning that recovery may be out of reach for many producers. At the center of the storm are sweeping tariffs, which have triggered retaliatory actions—most notably, a nationwide boycott of American wine in Canada, the industry's top export market with over $1.1 billion in annual sales. Canada’s response, a coordinated removal of U.S.-made wines from shelves and restaurants, has not only been symbolic but economically severe. The boycott, which began in Ontario, quickly spread to every province. It’s become a matter of national pride for Canadians to avoid American wine, a sentiment wine industry leaders fear may have long-lasting psychological effects on consumers.

Mike Kaiser of Wine America described the industry as “caught in the crossfire,” with small wineries in places like California’s Napa Valley and New York’s Finger Lakes region bearing the brunt. Napa producers like Christi Coors Ficeli report rising costs due to pandemic-related supply chain issues and increased tariffs on essential goods like glass bottles and French oak barrels. Many of these materials are sourced internationally, and with tariffs on Chinese imports reaching 145%, production has become prohibitively expensive.

At the same time, domestic wine consumption has declined, challenged by the rise of alternative alcoholic beverages, shifting health narratives, and the rising cost of wine tourism. The result is a perfect storm that threatens not just exports, but the entire U.S. wine economy.

Kaiser and others have urged the federal government to reconsider its trade strategy or, at minimum, to avoid ensnaring industries like wine in broader geopolitical disputes. Yet with limited power in Congress to curb presidential tariff authority, and no comment from the White House on the crisis, winery owners are left to weather an economic downturn worsened by decisions made far beyond their vineyards.