U.S. Wineries Suffer Record Export Decline as Tariffs Slash Sales to Canada by 80%

Wineries across the United States are still feeling the impact of tariffs, despite a recent Supreme Court decision that limited the president’s authority to impose broad trade restrictions. The situation began last year when former President Trump placed tariffs on Canadian imports. In response, Canada imposed its own tariffs on American goods, and nearly every Canadian province stopped importing U.S. wines. Trump also set wide-ranging tariffs on products from the European Union, including equipment used in winemaking and agriculture.

Last month, the Supreme Court struck down the president’s power to impose global tariffs under the International Emergency Economic Powers Act. Many local wine producers saw this as a reason to celebrate. However, relief has not materialized for most wineries.

Congressman Mike Thompson, who represents California’s Sonoma and Napa counties, said that farmers and ranchers face more daily business challenges than almost anyone else. He pointed to labor issues, equipment costs, fuel prices, and now what he called an “illegal, self-imposed, and harmful tariff” that has made an already tough environment even harder. According to a new report from the Wine Institute, 2025 marked the worst annual decline in U.S. wine exports in history. Sales to Canada dropped by nearly 80%, and total global exports fell by 35%. This resulted in more than $400 million in lost sales for American wineries.

“Before the trade wars, we exported about $60 million a month to Canada,” Thompson said. “Now there are almost no imports. When you lose market share—especially all of it—it’s very hard to get it back.”

The U.S. Department of Agriculture announced a $12 billion aid package for farmers late last year, but Thompson said it is not enough. Only $1 billion of that fund is allocated for specialty crop producers such as those growing vegetables, fruits, and wine grapes. “A billion dollars for all specialty crop producers doesn’t even scratch the surface,” he said.

To address this gap, Thompson introduced a bill in December called the Tariff Relief Act for Specialty Crop and Wine Producers. If passed, it could provide significant help for local wineries like CMB Family of Wines, which owns Martin Ray Vineyards in Santa Rosa and Foppiano Vineyards in Healdsburg.

Henry Cilek, export director at CMB Family of Wines, said that after 2024—the company’s best export year ever—volumes dropped by 45% by the end of 2025. Most of that loss came from Canada. But retaliatory tariffs also hurt exports to other countries because buyers could not predict their fixed costs for importing American wines.

“A wine I could export for an uncertain amount—they weren’t sure if they’d get it at the usual price or if it would be 50%, 75%, or even 150% more expensive,” Cilek explained. “Those numbers changed day by day, week by week.”

Cilek also noted that consumer confidence has been shaken by the trade wars. At a recent international wine fair in Paris, he noticed fewer visitors than before tariffs were imposed. “What struck me most was how much less wine I poured,” he said. “We had the same number of meetings with industry people who were optimistic about working together in these new times, but there was a noticeable lack of consumers visiting the California pavilion.”

Even small wineries focused on domestic markets have felt the effects. Adolfo Hernández, founder of Monroy Wines in Santa Rosa, said tariffs have increased costs for essential winemaking supplies such as French oak barrels, bottles made in France, and corks from Portugal and Spain.

“It’s a global industry,” Hernández said. As an independent winemaker producing only 500 cases per year, any cost increase hurts his bottom line. “A good barrel isn’t cheap; it usually costs around $1,500,” he said. “If you add 10% to that, it starts cutting into your margins.”

Hernández pointed out that with the U.S. wine industry already facing a downturn, tariffs are making things worse. While he welcomed the Supreme Court ruling limiting tariff powers, he is concerned about efforts to reimpose global tariffs through other laws such as the Trade Act of 1974.

“I hope it doesn’t pass and this whole tariff thing becomes a thing of the past,” Hernández said. “But that’s just hope.” Cilek added that his company and many other California wineries plan to apply for tariff refunds as they try to recover from one of their toughest years on record.