Trump’s promise of tariffs is bad news for Oregon wine industry

Published 5:00 am Monday, February 24, 2025

The Trump administration’s threat of a 25% tariff on goods from Canada and Mexico has the Oregon wine industry nervous.

The administration’s pause on increasing tariffs is slated to expire in late February, prompting Oregon’s congressional delegation to take action. Rep. Andrea Salinas, Oregon Congressional District 6, joined with her democratic cohorts to admonish the president’s actions.

“In the wake of your initial tariff announcement on Feb. 1 … Canadian leaders immediately announced a host of retaliatory actions that will be implemented in the event you move forward with your 25% blanket tariffs,” Salinas and others wrote in a letter forwarded to Trump. “These retaliatory actions led to wineries across the U.S. seeing orders cancelled and fearing they had lost access to a key market and significant source of income. Further, Canadian purchasers no longer know that they can rely on a stable trade relationship with the U.S., which will have lasting consequences, even if your blanket tariffs are not ultimately imposed.”

Canada is the largest foreign market for domestic wine with more than $1.1 billion in total retail sales in 2024. The numbers don’t lie when considering the effects the tariffs could have on the wine industry in the United States in general and Oregon in particular: There are more than 11,000 wine producers across the country, the industry supports upwards of 1.85 million jobs and generates over $275 billion in sales each year.

According to the most recent Oregon Vineyard and Winery Census, this state exports 46% of its exported wines to Canada, including 72,461 cases shipped north in 2023.

“The harm a trade war could do the U.S. wine industry is a microcosm of the harm it could do to our entire economy,” Salinas said. “As such, we urge you to work with Canadian leaders to avoid implementation of blanket tariffs following the current pause.”

The letter was co-signed by others in Congress, including Reps. Janelle Bynum (District 5), Jared Huffman (California), Jonathan Jackson (Illinois), Tim Kennedy (New York), Rick Larsen (Washington) Brittany Pettersen (Colorado), Kim Schrier (Washington) and Marilyn Strickland (Washington).

At least six Canadian provinces have responded to the tariffs by urging state-run liquor stores to remove American wines and other alcoholic beverages from their shelves. What followed was the emergence of “Buy Canadian Instead” signs adorning shelves where American bottles of libations once stood.

And the blow to the industry didn’t stop there. According to industry sources, Oregon winemakers received notice in early February that commitments to sell tens of thousands of cases of wine to outlets in Canada were being reneged on and future sales were in peril. The move came not only due to the tariffs but also because of anti-American sentiment in general.

“A trade war with Canada could lead to catastrophic results, not only because U.S. wine producers would lose access to their largest export market, but also because a trade war will likely increase inflationary pressures. Americans are already squeezed by inflation — further inflation will lead to more Americans only being able to afford the bare essentials,” Salinas said.

“The harm a trade war could do the U.S. wine industry is a microcosm of the harm it could do to our entire economy.”

Congresswoman Andrea Salinas