(Just-Drinks) - The trade association for California's wine industry has warned that the fledgling trade row between the US and China could have a "significant negative impact" on its exports to the booming market.

Following the imposition of increased tariffs on all imported steel and aluminium earlier this month, The US has been warned that it faces retaliatory action. Last week's move by the European Union that threatens US whiskey companies was followed days later by a similar warning from China, this time aimed at US wine.

Late on Friday, The Wine Institute, which represents California's winemakers, called for both sides in the affair to resolve their differences.