US wine exports to Canada collapsed by 78 percent in 2025 following the escalation of trade disputes between the US and Canada, forcing a California producer to put vineyards up for sale as higher costs and tariffs weigh on the industry.
Wine Exports to Canada Plunge Amid Trade Friction
- US wine exports to Canada fell from $460 million in 2024 to $103 million in 2025, according to data from The Wine Institute.
- California’s McManis Family Vineyards listed its kelter buildings and 1,400 hectares of vineyard land for $78 million after 40 percent of its export volume had gone to Canada and the value in September fell to five percent.
- Ontario winemakers captured a 60 percent sales increase for domestic labels as trade friction and the dispute with Canada shifted demand toward Canadian wine.
Californian Vineyards Face Severe Financial Strain
The trade friction under President Trump has damaged the export business of American wine producers.
Data compiled by The Wine Institute confirms that shipments to Canada dropped to $103 million in 2025, down sharply from the $460 million recorded a year prior. Producers such as the McManis Family in California, whose infrastructure can process 50,000 tons of grapes annually and bottle 36 million bottles, have put assets up for sale. After 36 years since the founding, their facilities and 1,400 hectares of vines are listed at $78 million.
Tourism Declines Compound Napa Valley Pressures
Beyond the collapse of exports, domestic estates face headwinds from a shrinking base of international visitors. Linsey Gallagher, president of Visit Napa Valley, told the Agence France-Presse that the proportion of foreign guests dropped from 20 percent to eight percent over a two-year period.
While estates pivoted marketing expenditures toward the domestic consumer base to offset the visitor deficit, local demand within lower price tiers has simultaneously contracted. Master of Wine Doug Frost, CEO of Echolands Winery in Washington State’s Walla Valley, told The Drinks Business that his operation lost its Canadian export channels almost overnight. Frost stated that it would take a generation to undo the damage that’s been done.
Canadian Producers Capture Market Share
While American growers scale back operations and put land holdings up for sale, Canadian competitors are seeing a surge. Producers in Ontario report a 60 percent increase in sales of domestically produced wine as the trade dispute and shifting consumer preferences alter the North American beverage market.
| Metric | 2024 Period | 2025 Period |
|---|---|---|
| US Wine Exports to Canada | $460 Million | $103 Million |
| Ontario Domestic Wine Sales | Baseline | +60 Percent Increase |
Vineyards across Washington State and California continue to face pressure as trade policy disputes persist into late 2026.
