California lawmakers are intensifying efforts to persuade Canada to reopen its market to American wine, an endeavor aimed at mitigating the severe financial strain on the state's wine industry. The push comes nearly 18 months after Canadian provinces began retaliating against former President Donald Trump's trade policies by removing U.S. alcohol from shelves, a move that has significantly impacted exports.
A bipartisan delegation of California legislators has formally urged Quebec Premier Christine Frechette to reverse these restrictions, arguing that wineries have been ensnared in a broader trade conflict. In a letter to the premier, the lawmakers stated that restoring access for American wines would enhance consumer choice and demonstrate a commitment to fair trade practices for both Quebec consumers and the U.S. producers who are disconnected from the underlying trade disputes. They emphasized that the wine restriction has had damaging consequences for regional consumers, businesses, and producers who had no role in national policy decisions.
New data underscores the severity of the situation for the U.S. wine sector. According to the Wine Institute, a California-based industry advocacy group, exports to Canada plummeted in 2025, resulting in nearly $357 million in losses for U.S. wineries. The institute reported that the provincial bans affected approximately 95% of small and medium-sized, family-owned wineries and contributed to hundreds of layoffs. The organization described the 2025 trade disruption as the most catastrophic single-year event in the history of U.S. wine exports.
California, responsible for roughly 80% of all U.S. wine production, is particularly vulnerable to the loss of its largest export market. Between 2024 and 2025, U.S. wine exports to Canada saw a decline of at least 78%, according to the Wine Institute. Several producers have already curtailed operations, with E. & J. Gallo Winery in Modesto scaling back its business in 2026, and Ernest Vineyards in Healdsburg and Margins Wine in Watsonville ceasing operations entirely.
In parallel efforts, lawmakers are exploring avenues for financial relief for agricultural producers. Senator Adam Schiff, a Democrat, has introduced a legislative package comprising six bills designed to bolster support and market access for California's growers. These proposals aim to increase funding for U.S. Department of Agriculture programs focused on disaster prevention, recovery, and agricultural research. Although wineries would not be directly eligible for aid, grape growers who supply wine producers could potentially benefit. Schiff joined House colleagues in a June 24 letter to Premier Frechette, advocating for a reconsideration of Quebec's restrictions.
At the state level, Assemblymembers Damon Connolly and Rhodesia Ransom proposed Assembly Bill 1585. This bill sought to mandate that wine labeled as "American" must be produced from grapes grown in the United States. Proponents argued the measure would strengthen demand for U.S.-grown grapes, but the bill was withdrawn from a California Senate hearing due to insufficient support for its advancement.