Exports of Californian wine to Canada have fallen by almost 90 percent since Canadian provinces pulled American wine, spirits and beer from the shelves of state-run stores in March 2025. Julie Berge of the Wine Institute told radio station KFBK that exports stood at almost 40 million dollars a month before the ban, and have averaged just over five million since March 2025.
The figure comes as California enters the peak of harvest and marks September as California Wine Month. For wineries, growers and distributors this is the period when decisions are made about production, stock and sales, so the loss of the nearest export market hits at the worst possible moment.
Meanwhile the dispute has deepened. Canada’s finance ministry has confirmed that it introduced retaliatory tariffs of up to 50 percent on American goods worth 27.6 billion Canadian dollars, including steel, aluminium, household appliances, agricultural equipment, paper and electronics. The measure responds to the absurd American tariffs of up to 50 percent that Trump imposed in August on around 20 billion dollars of Canadian goods, among them Canadian wine, alongside hockey sticks, furniture and honey.
Talks between Washington and Ottawa have broken down, and provincial surcharges such as the one in Saskatchewan, where an additional 50 percent has been levied on American alcohol since 8 September, only widen the gap. The Wine Institute warns that a prolonged absence from the shelves opens the door to competitors from other countries, and that getting back onto the shelves takes time even after the tariffs are lifted.
For years Canada was the largest export market for American wine. Its disappearance is one of the reasons why US wine exports have fallen below one billion dollars for the first time since 2009.
