Trade wars. It should be obvious there will be no winners in the short-term, at least. California produces about 90% of America's wine and about 90% of its wine exports.
China is a substantial wine export market, but the import taxes have now reached 79%. It's a no-brainer to realize others, such as Australia, will fill in as California loses out.
The recent NAFTA overhaul is fixing some discriminatory practices with wine exports in Canada. The provincial governments exercise a lot of control over how the markets work and British Columbia in particular was trying to protect its own wine industry by clamping down on imported wines. Canada is the single largest export market for U.S. wines with over $1 billion in retail sales. It looks like that number will improve despite the strong U.S. dollar.
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