California wineries are already being crushed by Trump’s tariffs on Canada

by SFChronicle

15 Comments

  1. SFChronicle

    >Alex Krause and John Locke owe the start of their California wine business to Quebec. But now, because of Canada’s retaliatory actions to [President Trump’s tariffs](https://www.sfchronicle.com/bayarea/article/tariffs-trump-gas-prices-20202883.php), the North American neighbor has created a financial nightmare for their company. 

    >The [Santa Cruz](https://www.sfchronicle.com/projects/2024/santa-cruz-restaurants/) winemakers were unsure about starting their own winery until, in 2007, they had a “very good meeting over lunch,” Krause said, with the buyer for the Societe des alcools du Quebec,  the government-owned monopoly that oversees all alcohol sales in Canada’s largest province. The buyer expressed interest in a wine that Krause and Locke wanted to make: an obscure Italian white variety called [Malvasia](https://www.sfchronicle.com/food/wineoftheweek/article/This-17-white-wine-from-Monterey-is-an-optical-16151830.php).

    >Because of that meeting, Krause and Locke started their winery, Birichino, and made 4,000 cases of Malvasia. For their first two years, Quebec was Birichino’s only customer.

    >On Tuesday, Quebec Premier François Legault announced that all American alcohol products would be removed from the province’s shelves, in retaliation for the 25% tariffs that [President Trump](https://www.sfchronicle.com/donald-trump/) has imposed on all Canadian products entering the U.S. The Quebecois prohibition on American booze mirrors those instated in Ontario, British Columbia, Nova Scotia and Newfoundland and Labrador. 

    >The impact on U.S. alcohol could be major, as Canada is its largest export market, responsible for over $1 billion in annual sales. It comes as the American wine industry is experiencing a [sharp decline in sales](https://www.sfchronicle.com/food/wine/article/california-wine-industry-downturn-18711236.php), and wineries of all sizes are struggling to remain solvent.

    Read more: [https://www.sfchronicle.com/food/wine/article/trump-tariffs-canada-20205140.php](https://www.sfchronicle.com/food/wine/article/trump-tariffs-canada-20205140.php)

  2. Uptons_BJs

    33% of American wine exports go to Canada.

    This trade war is going to demolish the US wine industry.

  3. Thomaz101

    Unfortunately it’s hurting California, Washington State and Oregon which didn’t vote for the orange baboon. But war is war.
    Bourbon and whiskey producers will suffer too.

  4. RagingLeonard

    Who would’ve thought that a buffoon who bankrupted a casino would trash the economy?

  5. Canadians don’t want to do this but this a way to send a clear message: we will not tolerate economic attacks by our supposed closest ally. Also this is not just due to tariffs, the 51st state comments are a direct existential threat to our sovereignty.

  6. SILENTDISAPROVALBOT

    Sorry America, this Brit won’t be buying your wine any time soon, either.

  7. the only little solace i take in this is that many of the pretentious douche winery owners voted for this fool. most of their staff likely didn’t though, and i feel for them.

  8. No_Patience_6801

    California wineries were headed this way already. The QPR just doesn’t justify most of the wines.

  9. Secret-Equipment4039

    If there’s something I’ve learned over the past few weeks, is that our Canadian brothers & sisters love themselves some flabby buttery Chard. Big blow to the mega industrial American wineries.

  10. robdwoods

    So far in BC we have only removed red state booze so CA, OR, WA wine is still available. Presumably our premier wants to maintain west coast cooperation.

  11. AffectionateBall2412

    They are still selling US wines at the provincial BC liquor stores. They pulled US liquor but not wine.

  12. 100% of exports go outside of USA, the way they’re action now i am seriously going to buy Georgian wine now instead. Or Turkish.

  13. winelover08816

    Crushing California would seem to be a huge motivating factor for this administration as their supporters get absolutely bug-eyed at the mere mention of the state.

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