Wine producers face surplus and export losses amid trade disputes

Italian winemakers reported that a record 5.3 billion litres of wine were stored in cellars in May, a 7.3 % rise year‑on‑year, as exports to the United States fell 15.4 % following tariffs and a weaker dollar. To reduce the buildup, producers are re‑classifying one in five bottles to lower quality tiers, a move the Unione Italiana Vini says could cost the sector around €516 million in 2026 and has prompted calls for a temporary halt on new vineyard planting permits.

In the United States, California lawmakers are urging Quebec to lift restrictions on American wine that were imposed during a trade dispute. Exports to Canada dropped by about 78 % in 2025, costing U.S. wineries roughly $357 million and leading to shut‑downs at several California wineries. Legislators are pushing for financial relief for growers and for the restoration of market access to Canada to stabilise the sector.

Both regions highlight how trade‑related barriers are creating surplus inventories and financial strain for wine producers across the globe.