The ongoing trade war between the United States and China will hit Bay Area wineries hard.
China is slapping new tariffs on U.S. goods, including wine.
In Livermore, Wente Vineyards said China has imposed tariffs three times now and this third tariff is really the nail in the coffin for their wine sales to the country.
Michael Parr of Wente Family Estates said the trade war feel like they are "being held hostage, we feel is unfair."
U.S. & World
Vineyards like Wente say they have now stopped exporting wine to china after doing so for years.
The decision comes as China is raising tariffs on June 1 for $60 billion of U.S. Goods, including wine.
The new tax means Wente and many other U.S. brands just got a lot more expensive in China. And that means it is much harder to compete against rivals from Chile and Australia, who have free trade agreements with China.
"Short term, these retaliatory tariffs means we're not going to ship wine and we're not making any money," Parr said. "Lost revenues will be the biggest impact we feel right away. Long term impact, it's the fact that we have lost opportunities to ship wines."
Meanwhile, President Donald Trump's tariffs on China are also making things more expensive for millions of American customers.