Open any one of the wine industry’s major news aggregator email blasts, and it won’t take long to see trade media flooded with opinions and editorials on wine tariffs and their potential harm to the “American wine industry.” The focus thus far has been exclusively on the loudest voices — the American importers and distribution companies, as well as the retailers they serve.
But let’s be clear: these voices alone do NOT represent the heart or entirety of the “American” wine industry.
The American wine industry is a diverse network of people rooted in their local communities—grape growers, winemakers, farm workers, and wineries (often family-run). Add to this list the countless restaurants and retailers whose livelihoods depend on the tourism dollars generated from domestic wine production, and you’ll find an industry that is as vast, as it is vulnerable.
And while the focus of the discussion around tariffs has overwhelmingly centered on the ‘harm’ they might cause, domestic growers and wineries are fighting for survival —and they’re conspicuously left out of the conversation.
Controlling the Narrative
With the narrative being controlled by importers and distributors, a misconception has been created that lower import prices are fundamentally better for all segments of the industry. In reality, these low-cost imports have made, and continue to make, it more challenging for U.S. growers and wineries to survive.
Now, it should hardly be surprising that importers and distributors have a vested interest in maintaining an unimpeded flow of low-cost foreign wines. Indeed, few would argue against their right to access these products. However, these wines land so cheaply on our shores for a reason. Current trade policy ignores the market distortions created by foreign production subsidies and unfairly undermines domestic producers, who are struggling to compete against these heavily subsidized imports and the lower costs of production abroad.
Another argument that continues to circulate is the claim that ‘wine isn’t fungible’; suggesting consumers will never trade their Bordeaux or Sancerre for a local option. In my opinion, this argument is far overstated and diminishes the quality and array of varieties and flavor profiles being produced by the 17,000+ bonded U.S. wineries. It’s also worth noting that those who profess such inflexibility often have the means to adjust their habits without breaking the bank.
The System is Broken
Today, many American restaurant wine menus read like foreign trade catalogs. The lack of local options not only limits consumer choice, but also actively undermines the visibility and viability of American wines.
The hypocrisy is glaring. We promote localism in our food chain but eagerly look to pair that food with a foreign wine. It’s particularly painful to see this in Sacramento, with its celebrated “Farm-to-Fork” narrative, or even in our nation’s capital where putting the interests of “America First”, now dominates the discourse. Remember, the Italian and French restaurants here likely aren’t serving food imported from Europe—they’re serving dishes inspired by those regions. So why not serve domestic wine inspired by these wine cultures, but made right here in our own backyard?
It really is a simple equation: supporting your community ensures your community can support you.
These issues of exposure and cultural hypocrisy are compounded by systemic inequities in distribution and production. As consolidation continues throughout the supply chain, wine growers and consumers will suffer from limited choice and narrow control of pricing. The recent announcement from the Federal Trade Commission (FTC) that they had filed a lawsuit alleging that a major distributor offered steep discounts to large chain retailers, while denying smaller grocery and convenience stores the same opportunities, is a timely example of just that.
The effects of such practices ripple across the entire supply chain, as wineries rely on fair distribution practices to secure shelf and menu space to reach consumers. When small, independent retailers—often those who champion local wines—are disadvantaged, smaller domestic wineries face even greater challenges in an already competitive market dominated by subsidized imported wines and large-scale producers.
As outgoing FTC Chair Lina M. Khan aptly put it, ‘When local businesses get squeezed because of unfair pricing practices that favor large chains, Americans see fewer choices and pay higher prices – and communities suffer.’
In this environment, local producers are being squeezed out before they even have the chance to pour their first glass.
Leveling the Playing Field
Imposing tariffs is not always about harming competition, tariffs are meant to aid in leveling the playing field – to give domestic companies a fair shot at competing within their own markets. These hypothetical tariffs are not aimed at crippling industries or retaliating against countries for unrelated matters. They are modest and intend to address the competitive advantages created by foreign subsidies and lower production costs.
Often overlooked in discussions on tariffs and trade, is the responsibility American growers and wineries bear in complying with stringent environmental and social policies. These regulations, designed to promote sustainability, worker protections, and environmental stewardship, reflect values that American voters have long prioritized. However, adhering to these high standards—especially for the 80% of U.S. wine produced in California—comes with very real, and very significant production costs, which inevitably impact wine pricing.
Meanwhile, foreign competitors, who benefit from substantial government subsidies, such as crisis distillation programs, marketing and export support, and fewer regulatory burdens, continue to flood our market. This creates a deeply frustrating dynamic where American producers are burdened with the costs of meeting their social and environmental obligations, yet are left unsupported when those same costs leave them at a disadvantage in their own market.
In the U.S., we produce less wine than we consume, yet today we are seeing vineyards being torn out en masse. Wineries are closing their doors, jobs are being lost, and communities are being weakened. Current estimates suggest that 30,000+ acres of grapes have been removed in California over the last 18 months. To use only one example of a single cultural task, the pruning of those lost acres would represent more than $10M in spending. That’s $10M no longer reaching the pockets of farm workers in many of our most vulnerable communities. So, instead of viewing tariffs as a purely punitive measure, what if they were viewed as a tool to ensure U.S. producers, growers, and farm workers, have the opportunity to be at the table?
By focusing on measured, proportional tariffs, we can support California winegrape growers and wineries, while bringing focus to prioritizing local industries.
Call to Action: Support Local
The irony is stark: while importers and distributors fight to protect subsidized foreign wine imports, American grape growers and wineries are going out of business.
We need policies that recognize the vulnerability of domestic producers, invest in their growth, and acknowledge the role they play in our agricultural and economic landscapes.
And again, tariffs are not about pushing out international wines altogether—there’s room for everyone! But the narrative needs to shift. The imposition of reasonable tariffs will not prevent a consumer from buying the tariffed product, but it very well may encourage them to shop for alternatives, and in this case, those alternatives are likely to be locally grown and produced.
So, the next time tariffs on foreign wine come up, let’s remember who we’re really advocating for: the grape growers, the winemakers, the farm workers, and the restaurants and grocery stores in your hometown who build their wine lists around local offerings.
It’s time to explore what ‘leveling the playing field’ means and not get lost in amplified trade policy rhetoric. — By Natalie Collins, President, California Association of Winegrowers
