The US wine industry is bracing for the potential fallout from tariffs on European wines, with California likely feeling the biggest impact. American winemakers, restaurateurs, and others are urging President Donald Trump to exclude wine from tariffs on goods from Europe, citing that European wines are crucial to the health of domestic wines.
However, not all California wine producers agree, arguing that European winemakers receive subsidies, putting US companies at a significant disadvantage. With 15% tariffs now in effect, negotiations continue, and some details remain unknown, including possible exceptions.
The US wine industry is already facing challenges, including declining consumption, falling demand, and rising costs. Jason Haas of Tablas Creek Vineyard warns that rising European wine prices will hit the ecosystem of thousands of wine importers, distributors, retailers, and restaurants, which could be California’s most affected sector.
California’s wine industry generated $88 billion in economic impact in 2022 and exported $1.3 billion worth of wines last year. Winemakers stress that growing grapes and making wine takes years and that the current chaos poses an existential threat to their livelihoods.
Some US wineries are facing uncertainty due to reduced imports, affecting distributors’ revenue and retailers’ ability to stock domestic wines. Proprietor Matt Licklider notes that some distributors have ordered less from his winery due to tariffs, while Paul Einbund, owner of two restaurants in the Bay Area, fears that diners will opt for European wines over domestic ones.
However, Richard Samra, a grape grower with 40 years of experience, believes that US wine grape growers don’t need subsidies and wants to level the playing field. He argues that imports are a major factor and points out that European producers receive significant support from governments, which puts American companies at a disadvantage.
The industry is waiting for clarification on tariffs and their impact on exports and imports, as well as the potential exceptions.
Source: https://calmatters.org/economy/2025/08/california-european-wines-tariffs