The U.S. liquor industry has been hoping to avoid retaliatory tariffs on its products, but instead they look set to hit — and weigh on southern states in particular.

Canadian officials on Wednesday announced 25% tariffs on $29.8 billion of U.S.-produced goods after the Trump administration imposed 25% tariffs on Canadian steel and aluminum sold in the United States.

Canada’s announcement comes despite a detente having been reached Tuesday over the threat of a 25% surcharge on U.S. electricity consumers.