California partners with Canada to save wine – Business News
California lawmakers are ramping up efforts to reopen Canada’s market to American wine after a commerce dispute triggered a sharp decline in exports and deepened financial strain on wineries throughout the state.
Nearly 18 months after Canadian provinces retaliated towards President Donald Trump’s America-First commerce insurance policies by eradicating US alcohol from cabinets, a bipartisan group of California lawmakers is urging Quebec Premier Christine Frechette to back down and restore market entry for American producers.
In a letter to the premier, lawmakers argued that wineries have been caught within the center of a broader commerce battle.
California lawmakers are ramping up efforts to reopen Canada’s market to American wine after a commerce dispute triggered a sharp decline in exports and deepened financial strain on wineries throughout the state. Gado through Getty Images
In a letter to the premier, lawmakers argued that wineries have been caught within the center of a broader commerce battle. Getty Images for Robert Mondavi Winery and VII(N) The Seventh Estate
“Reopening the market to American wine would restore consumer choice and signal a commitment to restoring fair and balanced trade for Quebecois consumers and American wineries who have no connection to the underlying trade disputes,” the lawmakers wrote.
“Unfortunately, the restriction on American wine has had damaging consequences for regional consumers, businesses, and producers who had no influence over national policies.”
The push comes as new knowledge highlights the toll on the US wine industry.
Sign up for the California Morning Report publication
California’s high information, sports activities and leisure delivered to your inbox day-after-day.
Thanks for signing up!
According to the Wine Institute, a California vineyard advocacy group, exports to Canada fell dramatically in 2025, costing US wineries practically $357 million.
The group mentioned the provincial bans affected practically 95% of family-owned small- and medium-sized wineries and contributed to lots of of layoffs.
“Full-year 2025 data now confirms this is the most catastrophic single-year trade disruption in the history of US wine exports,” the group mentioned.
According to the Wine Institute, a California vineyard advocacy group, exports to Canada fell dramatically in 2025, costing US wineries practically $357 million. Getty Images for Robert Mondavi Winery and VII(N) The Seventh Estate
California accounts for roughly 80% of all US wine manufacturing, making the state significantly susceptible to the loss of its largest export market.
Between 2024 and 2025, US wine exports to Canada dropped no less than 78%, in accordance to the Wine Institute.
Some producers have already scaled back operations. In 2026, Modesto-based E. & J. Gallo Winery closed components of its business, whereas Ernest Vineyards in Healdsburg and Margins Wine in Watsonville shut down.
Download The California Post App, comply with us on social, and subscribe to our newsletters
California Post News: Facebook, Instagram, TikTok, X, YouTube, WhatsApp, LinkedIn
California Post Sports Facebook, Instagram, TikTok, YouTube, X
California Post Opinion
California Post Newsletters: Sign up right here!
California Post App: Download right here!
Home supply: Sign up right here!
Page Six Hollywood: Sign up right here!
Lawmakers are additionally pursuing financial aid for agricultural producers.
Sen. Adam Schiff, a Democrat, has launched a package deal of six payments aimed toward increasing assist and market entry for California growers.
The proposals would increase funding for US Department of Agriculture applications targeted on catastrophe prevention, restoration and agricultural analysis.
While wineries wouldn’t qualify straight, grape growers who provide wine producers could possibly be eligible. Getty Images
One measure would supply the USDA with $5 billion in financial help for specialty crop producers, together with fruit, vegetable, tree nut and horticultural growers.
While wineries wouldn’t qualify straight, grape growers who provide wine producers could possibly be eligible.
Schiff additionally joined House colleagues in a June 24 letter urging Fréchette to rethink Québec’s restrictions.
“As a US Senator on the Senate Agriculture Committee, I have had the great fortune of spending time with and learning about the challenges and opportunities of California’s winegrowers,” Schiff wrote.
“They take great pride in their work, are essential to the state and national economy, and have brought tremendous value – in culture and in taste – to Americans and Canadians alike.”
At the state degree, Assemblymembers Damon Connolly and Rhodesia Ransom launched Assembly Bill 1585, which might require wine labeled “American” to be comprised of grapes grown within the United States.Supporters mentioned the proposal would strengthen demand for US-grown grapes, however the invoice was pulled from a California Senate listening to after it turned clear it lacked enough votes to advance.
