As California prepares to challenge the Trump administration over tariffs, the state’s workers in sectors such as wine production, agriculture, and ports are bracing for potential disruptions to their livelihoods. The tariffs, particularly those targeting European products, have raised concerns among local business owners about the future of their operations.
One such business owner, Igor Ivanov, runs Vinous Reverie, a wine shop in Walnut Creek that specializes in European wines. With President Trump’s threat of imposing 200% tariffs on these imports, Ivanov faces difficult decisions about the future of his business. “I’d have to think about whether it’s worthwhile staying in business,” he said. Ivanov may need to pivot to California wines or potentially close his shop altogether.
The stakes are high, with the U.S. wine industry generating about $86 billion annually, according to the U.S. Census Bureau. In 2022, California alone exported $1.3 billion worth of wine. The impact of the tariffs extends beyond wine sellers to winemakers, who could face rising costs for essential supplies like glass bottles—mainly imported from China—as well as corks, labels, and other materials.
California is the dominant force in U.S. wine exports, accounting for 95% of the total. Over a third of these exports go to Canada, where leaders have expressed strong disapproval of Trump’s tariffs, which has led to a chilling effect on trade. U.S. Rep. Mike Thompson, whose district includes Napa’s wine region, has reported that some of his constituents have seen Canadian business partners cancel orders worth hundreds of thousands of dollars. Other potential export opportunities, such as those with Mexico and the European Union, are also facing delays.
One winery in St. Helena informed Thompson’s office that it lost 90% of its Chinese market share due to tariffs imposed during Trump’s first term. However, not all industry voices are pessimistic. Natalie Collins, president of the California Association of Winegrape Growers, pointed out that tariffs on foreign wines could create an opportunity for local California wineries to gain market share. Bruce Lundquist, co-founder of California sparkling wine producer Rack & Riddle, echoed this sentiment, suggesting that Americans should consider wines produced closer to home. “I wish Americans would look at wines grown in their backyard,” Lundquist said.
As the state’s economic uncertainty deepens, the outcome of the ongoing tariff dispute will likely have far-reaching consequences for California’s wine, agriculture, and port industries.
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