Tariffs & Trade: Keeping West Coast Wines Global
I love this industry. The people, the connections, the culture, the food and the wine that goes with it, it's everything I want to be around. I’ve been part of the wine world since 2006 and weathered many storms but my passion never wavered. My career has centered around expanding global trade because I'm inspired by people from all over the world and the extraordinary things they create: Parmigiano Reggiano DOP, Swiss chocolate, Greek extra virgin olive oil, French Champagne, avocados from Mexico, Korean seaweed, Colombian coffee, High Mountain tea from Taiwan, Honey Dill Sauce from Canada, Gouda from Holland. These items are staples in my life.
My passion for global flavors mirrors my drive to export high-quality wines from California, Oregon, and Washington with the world. Access to the best products from every corner of the globe should grow as we move further into the 21st century. But today, this access is being threatened.
Trade barriers, especially tariffs, are disrupting the ability to share what we produce. Wines from the USA have been caught in the crossfire, facing steep import taxes in key markets like China and Canada and even the European Union.
What many don’t realize is that American wines are already about 50% more expensive internationally than their average U.S. retail price — even before tariffs are factored in. Shipping, distributor margins, customs duties, and local taxes, drive up prices. When punitive tariffs are added on top, it becomes difficult for even loyal buyers to justify placing an order.
The pressures we’re feeling today are a continuation and escalation of patterns that were already unfolding in 2022 when recession fears loomed, (as written in my blog Disruption, and Inflation, and Recession, Oh My! from June 29, 2022). Smaller, family-owned wineries struggle to survive, with many being bought out by larger groups, a consolidation trend we’d seen before during past economic downturns. Now, those inflationary pressures have only deepened, compounded by international trade wars and retaliatory tariffs.
For many of the small, family-owned wineries we partner with across the West Coast, the impact of tariffs and trade barriers isn’t just financial. It is emotionally impacting as they continue to keep their stories, traditions and the future of their legacy, alive. These real producers have spent generations building their craft, and find their already limited access to global markets is being threatened by forces beyond their control. After nearly two decades dedicated to promoting California, Oregon and Washington wine abroad, it’s disappointing to hear that our trade relations are falling apart... not because of quality, but because of political agendas.
In May 2019 the U.S. increased tariffs on Chinese goods and escalated the U.S.-China trade war. In response, China imposed heavily retaliatory tariffs on key sectors, including wine, with a 93% duty implemented. Today, with an additional 125% tariff layered on, the total import tax stands at an overwhelming 218%. Canada also retaliated, even removing U.S. wines from store shelves. While the European Union has not imposed new tariffs recently, uncertainty continues to cloud the global trade landscape.
At the same time we are wavering a wave of tariff and other uncertainty, overall alcohol consumption declines. Many wineries are beginning to remove vineyard acreage in an effort to address oversupply. This reduction will help stabilize inventory levels, likely leading to an increase in U.S. wine prices as the market moves towards balancing supply and demand. Similar measures are already underway in other wine-producing countries, including Chile, France, and Australia.
When prices rise, importers hesitate, and global markets shift beneath us, we want to remind everyone that we're not just here to sell, but we're here to share. By working closely with our top wineries, we're adapting alongside you to changing with the times and provide the best products and service possible.
We are thirty winery partners strong across the Golden Coast, representing real hand-crafted wines that have been passed down through generations. These wines can be found in over twenty countries, supported by strong importer partnerships. We honor the reasons they believe in our wines: quality, value, authenticity, connection, culture, and accessibility; giving wine lovers around the world, the same access to specialty products I rely on from across the globe that enrich everyday life.
We are in this business together, let's keep the Collaboration strong and the wine flowing during this storm.
Sources: Hillebrand Gori – a DHL company | Bulk Wine Logistics Summit | California | 7 May 2025
Cheers,
Nicole
Nicole Djobadze
Collaboration Wine Exports LLC