President Donald Trump on Monday imposed 50% tariffs on most Canadian goods, alleging that America's neighbor is unfairly discriminating against American autos, alcohol and dairy products. 

The decision may risk higher inflation and cause further tension between the U.S. and Canada, the Associated Press reported. 

Trump signed three proclamations to launch the tariffs under Section 338 of the 1930 Trade Act. The new tariffs exclude energy products, potash, fish and critical minerals. 

They do include goods that have previously been protected from import taxes under the United States-Mexico-Canada Agreement. The U.S. didn't renew the agreement, which initiated a new set of negotiations that may run until 2036. 

The tariffs go into effect in 30 days, according to the White House, a timeframe that leaves no room for negotiations.