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California in crisis: Overproduction, market slump and tariff trouble

Published:  08 April, 2026

The faint smell of smoke in the air is all too familiar to those living in California’s wine regions, but lately the source will have been a vine pull rather than a wildfire, as producers grapple with a crisis being described as a reset. As the world’s fourth largest wine producer – after Italy, France and Spain – the Golden State accounts for more than 80% of US wine output and 95% of exports, with vines covering almost 250,000ha. The California Wine Institute estimates the industry generates $73bn (£55bn), employing 422,000 people.

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