Newly inaugurated President Donald Trump gave an update on his tariff plans last night, saying he’s now thinking of imposing 25% tariffs on key U.S. trading partners Canada and Mexico on February 1. He added that he may impose a universal tariff on all imports coming into the United States.

Drinks companies are holding out hope that the industry could be granted an exemption from tariffs, with levies on Mexican goods in particular being a significant threat to growth. A 25% tariff on Mexican goods could potentially cost American 14,000 jobs and $2.5 billion in economic activity, according to an estimate from John Dunham and Associates commissioned by the Wine & Spirits Wholesalers of America (WSWA).

Tariffs on Canada and Mexico would hit some of the spirits industry’s biggest brands. Crown Royal Canadian whisky (Diageo) as well as Tequilas Don Julio (Diageo), Patrón (Bacardi), Casamigos (Diageo), and Jose Cuervo (Proximo) all rank within the top 11 spirits labels in retail value terms in the U.S., according to Impact Databank. Additionally, Campari (Espolòn), William Grant (Milagro), and Mast-Jägermeister (Teremana) all count Tequilas as their top U.S. brands by retail value.

“Tequila is a huge portion of the imports that we bring in from Mexico, and it’s the only category over the last 12 months that’s showing a positive growth trend within the spirits category,” said Dawson Hobbs, executive vice president, WSWA. “So if Tequila were to then face this 25% tariff, we would really be faced with a significant headwind on the only area that’s been a bright spot for wine and spirits wholesalers and retailers in the United States.”—Daniel Marsteller