California wineries expect further losses after President Trump announced tariffs of up to 50% on Canadian goods and Canada responded with retaliatory tariffs on $20 billion of American products. Wine was not explicitly included, but several Canadian provinces have boycotted American alcohol since last March in response to earlier U.S. tariffs. A Wine Institute report said U.S. wine exports totaled $805 million in 2025, down 35% from 2024, with Canada accounting for 80% of the decline. Canada represents 36% of the U.S. wine export market, more than the European Union, the U.K. and China combined, and the boycotts erased roughly $360 million in revenue. The restrictions have hurt family-owned California businesses, prompted layoffs and threatened their shelf space in Canada. The industry is also dealing with declining demand, global oversupply, downsizing, winery closures and grape disposal. Efforts to expand in Japan, the UAE and Mexico are under way, but Wine Institute says no single market can replace Canada.