Now-paused tariffs on Mexico and Canada are still raising concerns of the alcohol industry in the U.S.
For now, President Trump says the U.S. is delaying 25% tariffs against Mexico and Canada on most goods — including alcohol — until next month.
But business owners still worry the tariffs will eventually mean higher prices for them that they'll have to pass on to costumers.
"I got a notification from the Liquor Control Board of Ontario saying they're not buying any more U.S. alcohol whether its beer wine or spirits," said Russ Klisch, president of Lakefront Brewery in Milwaukee.
Klish says Canadian production makes up about 4% of his brewery's production, and that's all lost for now.
Ontario isn't the only Canadian province pushing back against the new tariffs. The Premier of Manitoba signed an order that removes American alcohol from liquor stores run by the government.
America's northern and southern neighbors are key trading partners when it comes to stocking the alcohol aisle in the U.S.
Last year, the U.S. exported $768 million worth of spirits, wine and beer to Canada, and imported even more from the country, according to Trading Economics.
Meanwhile, over 80% of the beer the U.S. imports comes from Mexico, according to the Beer Institute.
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Because of the relationship between the three countries, the alcohol industry has pushed back on the tariffs.
In a statement, Chris Swonger, President and CEO of the the Distilled Spirits Council of the United States called the decision to delay the tariffs on Canada and Mexico "great news" for the spirits industries.
"We are hopeful that constructive dialogues continue between the U.S., Canada and Mexico that permanently brings back zero for zero tariffs for spirits trade between our three countries," Swonger said in the statement.
Prior to the announcement of the delay, Swonger praised the broader issues that President Trump is aiming to address with tariffs -- noting Trump's goals of increasing border security, reducing the trade deficit and slowing the flow of fentanyl into the U.S. But he said these tariffs would be "catastrophic" for the alcohol and hospitality industries.
Swonger also noted that unlike some goods, products in the alcohol industry are unique to where they're made.
"What's unique about our industry is we're distinctive products," Swonger said. "You can only make tequila in the Jalisco region of Mexico. You can only make American whiskey right here -- same with Canadian whiskey, as well. So, we're not widgets. You can't make more tequila here."
Tariffs could also impact the price of beer because of its packaging.
Many breweries say tariffs on aluminum and steel will mean the cost to produce their cans will go up.
In his address to a joint session of Congress on Tuesday, Trump warned there could be "a little disturbance" to the economy from tariffs but said it wouldn't be much.
Business owners aren't as certain the impact will be short-term, when the tariffs eventually go back into place.
"You never want direct disruptions," Klisch said, I don't really understand the goal, or the end play here on what's all trying to occur."
