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%Wineries across the U.S. are feeling the impacts of %Tariffs as foreign jurisdictions such as Canada and the European Union boycott American alcohol.

California's wine industry is really feeling the strain. According to the Wine Institute, California is the fourth largest wine producer in the world, generating $73 billion U.S. in annual sales.

However, foreign sales have plummeted this year as countries react to U.S. President Donald Trump's tariff regime by boycotting American products.

It was recently reported that U.S. wine exports to neighbouring Canada have plummeted 97% since President Trump first announced tariffs in April of this year.

In May and June of 2024, Canadians imported $34 million U.S. and $32 million U.S. worth of wine from the U.S., respectively. In May of this year, that number fell below $1 million U.S.

Data also shows a notable drop in exports of U.S. wine to the European Union, with lost sales this year estimated at more than $2 billion U.S.

Consequently, several California wineries have been forced to layoff staff. Bronco Winery Co., a company based in Central Valley, California that bottles over 50 brands of wine, recently laid off more than 200 employees.

Republic National Distributing Company, which distributes over 2,500 alcohol brands, is leaving California altogether and laying off 1,700 employees.

The current situation isn't confined to the wines of Napa Valley. Other alcohol companies are also being impacted by tariffs and international boycotts of American brands.

Beer and spirit makers such as %ConstellationBrands (NYSE: $STZ ) and Brown-Forman (BF.B) are each down more than 20% this year amid declining sales, notably to overseas markets.

The industry has been calling for relief from the Trump administration, but so far, no lifelines have been offered to the industry.