US President Donald Trump on Monday imposed 50 percent tariffs on most Canadian goods, declaring that Canada had engaged in unfair discrimination against American cars, alcoholic beverages, and dairy products.

This move could trigger a new wave of economic turmoil, with risks of rising inflation and worsening tensions between the two countries that had close ties before Trump returned to the White House.

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A US administration official, who briefed on the decision before its announcement, said Canada was among the few countries, along with China, that retaliated against previous tariffs imposed by Trump, asserting it should be held accountable, according to the Associated Press.

He explained that Trump signed three presidential proclamations to impose the tariffs under Section 338 of the Tariff Act of 1930. Several Democratic lawmakers had proposed last year to repeal this section, believing Trump could use it to destabilize the economy.

The 50 percent tariffs will exempt energy products, potash, fish, and critical minerals, but will include goods that previously enjoyed import duty exemptions under the United States-Mexico-Canada Agreement (USMCA).

This agreement, which took effect in 2020, recently expired, launching a new round of negotiations that could last until 2036.

The official added that Trump also asked his aides to study imposing additional tariffs on Canada, arguing that its wildfires negatively affected air quality in the United States.

The White House said in a fact sheet that the tariffs will take effect within 30 days, leaving room for negotiations, as Trump has not always implemented all the import duty increases he previously announced.

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However, these tariffs could escalate into a broader trade war as Canada seeks to defend its economy.

Ontario Premier Doug Ford said in a social media post: 'If these tariffs go ahead, Canada must respond with equivalent tariffs, dollar for dollar.'

Scott Lincicome, vice president of general economics at the Cato Institute, a libertarian-leaning think tank, said these tariffs not only threaten Canada but also pose a risk to other US trading partners and add 'a huge amount of uncertainty' to the global economy.

Lincicome added: 'We have passed the point of no return,' noting that 'resorting to Section 338 is the nuclear option in Trump's tariff policy.'

The new tariffs carry significant political and economic risks for Trump ahead of the midterm congressional elections scheduled for November. The 'Liberation Day' tariffs he imposed in April last year caused severe disruptions in financial markets due to fears of rising inflation and a recession, prompting him to temporarily backtrack to allow room for negotiations.