U.S. Tariffs and Climate Change Lead Wine Industry into Uncharted Waters

U.S. tariffs have exacerbated the decline in global wine trade, with consumption hitting a 60-year low according to the OIV. In response, the sector is pivoting towards wine tourism, sustainability, and developing lower-alcohol products, while contending with climate impacts and declining demand.

U.S. tariffs have contributed significantly to a decline in global wine trade, with consumption hitting its lowest mark in over 60 years, the International Organisation of Vine and Wine (OIV) reported on Tuesday.

The world's largest wine market, affected by tariffs imposed by former President Donald Trump, faces compounded challenges from economic pressures and changing consumer preferences. In 2025, global wine exports dropped by 4.7% in volume and 6.7% in value terms compared to previous years.

Facing current tariffs and the broader impacts of climate change, the sector is adapting by enhancing wine tourism, and sustainability initiatives, and developing lower-alcohol products. The OIV is also working on establishing a customs code for low-alcohol and alcohol-free wines, which comprise a small but growing segment of the market.