WOODBURY - The Taliban is making good on a threat to retaliate after an American soldier allegedly opened fire on civilians over the weekend, killing 16 people.

Militants opened fire on Afghan officials during today's memorial for the victims, leaving at least one person dead. The Taliban also vowed to behead Americans anywhere in Afghanistan.

In Jalalabad, Afghan students took to the streets to burn an effigy of President Barack Obama. The demonstrators were heard chanting, 'Death to America!' and 'Death to the soldier who killed our civilians!'

Meanwhile, U.S. Defense Secretary Leon Panetta says the soldier suspected in the massacre is in custody and could face the death penalty.

"War is hell," Panetta says. "These kinds of events and incidents are going to take place. They've taken place in any war."

Police and soldiers have stepped up patrols across Afghanistan, bracing for more backlash following the killings.