President Donald Trump invoked Section 338 of the Tariff Act of 1930 to block specified Canadian products from entering the U.S. market. The restrictions cover most Canadian alcoholic beverages, including certain beer, wine and spirits, along with motorcycles, whey, molasses and nonalcoholic beer. The administration also announced additional 50% tariffs on selected Canadian goods, including cheese, steel, aluminum and some furniture, beginning Sept. 15.

The measures came less than a day after Canada imposed retaliatory tariffs on about $20 billion of U.S. exports, including steel, dairy products and agricultural equipment. Washington says the restrictions are a response to what it considers discriminatory Canadian treatment of U.S. goods, particularly alcohol and dairy, while Canadian officials have accused the Trump administration of making unreasonable demands. The latest action further strains trade between two countries whose economies are closely integrated and raises additional uncertainty over the future of the U.S.-Mexico-Canada Agreement.