Napa Valley wineries feel hit from Trump tariffs

Napa Valley wineries and tourism businesses say Donald Trump's tariff policies and the US trade dispute with Canada are weighing on exports and foreign visits to the California wine region.

Linsey Gallagher, president of Visit Napa Valley, said the region remains one of the most global wine destinations in the United States, but that international business is “a little bit challenged.” She said the share of visitors from abroad has fallen from about 20 percent to eight percent, with the biggest impact coming from fewer Canadian visitors.

Ivo Jeramaz, who runs Grgich Hills Estate, blamed tariffs for increasing production costs and hurting exports. He said the winery had been selling more than 1,000 cases to Canada, but now sells none there.

Ottawa and Washington are in a trade dispute. Some Canadian provinces have removed US goods from shelves, and some Canadian tourists who might have travelled to the United States have stayed home.

Napa businesses have responded by focusing more advertising on the domestic market. Gallagher said the region welcomed about 3.8 million people last year, up three percent from pre-pandemic tourism levels, but warned that Napa would not fully recover until international tourism returned.

Changing drinking habits among younger consumers are also challenging Napa Valley. Some winemakers are trying to appeal to visitors by emphasizing environmental and social practices, as well as the region's food, hotel and outdoor offerings.