US winemakers urge Trump to tax Australian wine imports

American winemakers are urging President Donald Trump to impose higher tariffs on wine imported from Australia. The California Association of Winegrape Growers (CAWG) complains that Australia's 29 percent tax on U.S. wine creates an unfair trade situation. They argue that these practices hurt American wine producers. The CAWG has made a formal complaint to the U.S. Trade Representative. They claim that cheap, imported bulk wine is flooding the U.S. market, which threatens California vineyards. According to them, the competition from lower-priced foreign wine is driving local businesses out. While acknowledging that the issue is complex, the CAWG points out that some foreign competitors receive significant government support, which makes it harder for American growers to compete. They express doubts about whether Trump will implement effective tariffs but hope it might lead to better discussions on fair trade. Imported bulk wine, which is sold under "American" labels, is a key concern. The CAWG states that in 2024, over 300,000 tons of California grapes were left unharvested, while millions of gallons of cheap foreign wine replaced them. As a response, the CAWG highlights that current U.S. policies may undermine any new tariffs. They mention a federal program that allows companies to refund duties on imported wine, giving those imports an edge over local products. Australia supports its wine industry with grants and initiatives, aiming to promote tourism and assist grape producers. However, Australian wine consumption has been declining, while U.S. consumption has increased over the same period. American winemakers also benefit from government assistance, including tax credits based on production volume. Despite this, many producers face a challenging market, with declining sales partly due to younger generations showing less interest in wine.