Tariffs Spark Unlikely Wine Boom in North America and the UK

Trade tensions and shifting climates are reshaping drinking habits, pushing North Americans and Britons toward homegrown bottles—and creating unexpected pressure on Europe’s once-dominant producers.

When it comes to the negative effects of tariffs, one unexpected outcome has been that many importers are simply no longer bothering to bring in European wines. The uncertainty surrounding tariff levels—combined with concerns about the overall health of the economy—has discouraged long-term commitments. Paradoxically, this has created localized booms in domestic vineyards. Out of necessity more than ideology, restaurants in Canada, the UK, and the US are increasingly sourcing domestic wines for their lists. There is far greater media exposure—online, in print, and in general cultural conversation—about “drinking local,” especially in the anglophone world.

This is great news for small farmers, local consumers, and the environment. It is far less encouraging for medium- and large-scale European producers, many of whom are now struggling to sell wine abroad. The demand for European wines in North America may not return to previous levels.

In England, the shift toward grape farming has been somewhat slow, but quality is rising noticeably. Nyetimber’s sparkling wine recently became the first non-Champagne to win a prestigious French competition—an important milestone. Urban wineries are appearing across London and the Home Counties, and many English natural and semi-natural winemakers still operate as négociants. Wales and parts of Hertfordshire are now becoming hotspots as well. Winters are becoming milder, frosts less frequent, and summers warmer with long evenings—all factors favourable to viticulture.

Canadian wineries are also having a moment. Small producers are unable to keep up with demand, forcing previously sceptical restaurant owners to give Canadian wines a chance. Sales of British Columbian wines rose six percent from April to June, disproving the old assumption that they are of poor quality. In fact, current trends toward lower alcohol and higher acidity suit the Canadian climate beautifully. Very high import taxes in Canada also incentivise buying local.

Long may this continue. I’ve personally always found it hypocritical and bizarre at best that restaurants promoting local produce, seasonality, and sustainability don’t adhere to the same standards when it comes to wine.

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