OJAI, Calif. — California winemakers are sounding the alarm over new U.S. tariffs that could raise the cost of essential imported supplies — potentially leading to higher prices for American wine.
What You Need To Know
- U.S. tariffs on imported goods like French oak barrels, corks and glass could raise wine production costs in California
- California produces 80% of U.S. bottles, but relies heavily on imported materials to turn grapes into wine
- Winemakers said many are already struggling with thin profit margins because of a dip in consumption
- Some are adapting by using lighter bottles, synthetic corks, or even wine on tap to cut costs
The tariffs, part of a broader White House effort to reduce trade deficits and encourage domestic manufacturing, apply to a range of European imports. That includes the prized French oak barrels that many California vintners consider essential for aging premium wines.
“We age all our wines in French oak barrels,” said Adam Tolmach, founder of The Ojai Vineyard. “They’re manufactured in France and are irreplaceable.”
In addition to barrels, corks and glass are also set to become more expensive, compounding the pressure on producers already operating with narrow profit margins.
“A lot of people think the wine business is glamorous,” said wine analyst Chiara Shannon. “But most California wineries — especially small, family-run ones — are just barely breaking even.”
California produces approximately 80% of America’s wine, an industry valued at around $55 billion, according to the Wine Institute. With the market soft and production costs climbing, some winemakers are delaying product releases or exploring creative ways to cut expenses.
Andrew Coble, a winemaker in Santa Barbara County, said he’s using lighter glass bottles and technical corks to reduce costs.
He’s even considering putting wine on tap in his tasting room — a move that slashes packaging expenses.