- The US wine industry let out a sigh of relief last week when President Trump decided to pause placing 20 percent tariffs on goods from the European Union, which would have included wine. However, the White House’s global trade war is creating sour grapes with another major US trading partner–Canada; and that is jeopardizing California’s wineries, which usually bank big with our neighbors to the North.
- In other tariff news, Governor Gavin Newsom and California Attorney General, Rob Bonta, have filed a lawsuit against the Trump Administration, saying that the president does not have the authority to impose unilateral tariffs.
- A non-profit watchdog group has released a report that sheds light on the world of black market rideshare and food delivery accounts, where people who wouldn’t normally pass a background or criminal records check to register as a legitimate gig worker, can instead rent a vetted account on social media.
President Trump’s Canadian Tariffs Uncork New Problems for California’s Wine Industry
Although the Trump Administration has suspended its 25 percent tariffs on goods coming out of Canada, the Canadian leadership is holding steady on its reciprocal tariffs against US imports– and that is shaking up an already precarious situation for wineries in California.
Canada drinks billions of dollars worth of US wine annually. Souring sentiment against the Trump Administration has already pushed three Canadian provinces to yank US wines from store shelves.
California Sues Trump Administration Over Tariff War
California has become the first state in the US to sue the Trump Administration over its global trade war. President Trump is using the International Economic Emergency Powers Act to bypass congress in levying tariffs. Governor Newsom and Attorney General Bonta say that the law is being misused, and tariff powers still sit in the hands of congress–and not the executive office.