# California wine industry braces for impacts of new tariffs

The California wine industry is bracing for another blow after .

Canada's tariffs are a response to .

On Tuesday, Canadian stores began removing U.S. wines from their shelves.

Lodi wine commissioner Stuart Spencer said it's a hard hit for wine growers who are already struggling with declining consumption and wine oversupply.

"They're threatening to pull all the California wine off the shelves, which is going to have a significant impact on all California winegrowers,” said Spencer.

Canada is one of California’s biggest export markets. .

"It's $1 billion market for California wine,” said Spencer. “It's a significant piece of our export business."

These actions are also sparking concern among small businesses in Sacramento.

Giang Pham opened his Vietnamese restaurant in East Sacramento two months ago. He said an increase in cost could make it harder to keep prices affordable.

"It's definitely something that we're concerned about,” said Pham.

Pham is waiting to hear from his suppliers to determine what his next step will be.

"At the moment we don't know anything yet until our suppliers contact us and let us know about some of the produce items that's going to go up,” said Pham.

Small business owners and the wine industry are yet to see the full impact of these tariffs unfold.

“The biggest concern is Canada,” said Spencer. "All of California agriculture is struggling right now and we need some support from Congress.”

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