California partners with Canada to save wine industry
California lawmakers are pushing to reopen the Canadian market to American wine following a trade dispute that led to a significant drop in exports and financial strain on wineries in the state.
After Canadian provinces retaliated against President Trump’s trade policies by removing US alcohol from shelves, a bipartisan group of California lawmakers is calling on Quebec Premier Christine Frechette to restore market access for American wine producers.
The lawmakers highlighted that wineries have been negatively impacted by the trade dispute and emphasized the need to restore consumer choice and fair trade practices.
New data from the Wine Institute revealed that exports to Canada plummeted in 2025, resulting in a loss of nearly $357 million for US wineries. The provincial bans affected small- and medium-sized wineries, leading to layoffs and economic challenges.
California, known for producing 80% of US wine, suffered a 78% drop in wine exports to Canada between 2024 and 2025. Some wineries, such as E. & J. Gallo Winery, Ernest Vineyards, and Margins Wine, had to scale back operations or shut down due to the restrictions.
Lawmakers are also working to provide financial relief for agricultural producers, with Senator Adam Schiff introducing a package of bills to support California growers. The proposed measures aim to expand funding for USDA programs and provide economic assistance to specialty crop producers, including grape growers.
In a letter to Premier Frechette, Schiff urged Quebec to reconsider its restrictions, emphasizing the importance of California winegrowers to the economy and cultural value shared by Americans and Canadians.
At the state level, Assembly Bill 1585 was introduced to require wines labeled “American” to be made from grapes grown in the US. Although the bill aimed to boost demand for US-grown grapes, it was withdrawn from a Senate hearing due to insufficient support.
Overall, California lawmakers are determined to resolve the trade dispute with Canada and support the state’s wine industry through legislative efforts and advocacy.
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