The Trump administration announced Monday that it will levy a 50% tariff on selected Canadian imports, saying the move is necessary to counter what it described as discriminatory trade policies that disadvantage American businesses and workers.

The new duties will apply to certain products imported from Canada and are scheduled to take effect on Aug. 19 under the authority of the Tariff Act of 1930.

Administration officials contend that Canada’s existing tax structure unfairly penalizes U.S. automakers, resulting in a sharp drop in American vehicle exports while providing an edge to competing foreign manufacturers.

“I find that it is necessary and appropriate and in the public interest to impose an additional ad valorem duty of 50 percent on certain products of Canada,” the order said.

“The United States, U.S. businesses and workers, and U.S. commerce suffer from Canada’s discriminatory, unequal, and unreasonable tariff scheme.”