U.S. President Donald Trump Tuesday morning put into effect the long-threatened tariffs against Canada and Mexico. The move is likely to bring about retaliatory actions from both countries.

Canadian and Mexican imports will now be taxed at 25%, while energy imports from Canada will be taxed at 10%, The Associated Press reports. Additionally, a 10% tariff that Trump previously leveraged against Chinese imports is now 20%.

Canada’s prime minister, Justin Trudeau, has vowed tariffs on $100 billion worth of U.S. exports to Canada in the coming weeks. China has vowed up to 15% tariffs on American farm exports, while Mexico has yet to announce any retaliatory actions.

The U.S. spirits industry is braced for retaliation on spirits, given that Canadian whiskey and tequila are among products affected. The Distilled Spirits Council of the United States (DISCUS) reports that the U.S. imported $5.2 billion worth of tequila and $93 million worth of mezcal from Mexico, and also imported $622 million worth of Canadian spirits.

DISCUS President and CEO Chris Swonger said in a statement, “With spirits products between our three countries already benefitting from fair and reciprocal trade, it makes no sense to have them embroiled in this trade dispute.”

Fears of inflation and lost jobs are at the heart of the fears for the spirits industry, including the possibility that Canada will again remove U.S. products from store shelves. Another fear is a projection of a potential loss of more than 30,000 American spirits industry jobs.

“Tariffs on spirits products from Canada and Mexico will jeopardize the industry’s contribution to the U.S. economy,” Swonger said. “The North American spirits sector is highly interconnected and, as a result, tariffs on Tequila and Canadian whisky will harm U.S. spirits companies that have these products in their brand portfolios.

“American spirits consumers as well as restaurants and bars across our country that are still struggling following the pandemic closures will shoulder the burden of these tariffs. Tequila, Mezcal and Canadian Whisky are rooted in geographical traditions and local craftsmanship that complement, rather than compete with, U.S. distilled spirits brands.”