China's tariffs - due to begin next Monday - would also apply to US oil and farm machinery, but more talks are due this week.

Mr Trump on Saturday signed an executive order placing 25 per cent tariffs on goods imported from Canada and Mexico and a 10 per cent tax on China, as he demanded an end to illegal migration and drug trafficking.

If Republican President Donald Trump’s tariffs on oil and electricity imports from Canada are enacted next month, customers in the Northland could see energy prices increase. Tariffs of 10% on Canadian energy like oil,

U.S. President Donald Trump said on Sunday that although Britain was "out of line" when it came to trade he thought it may be able to avoid tariffs, adding of the imbalance: "I think that one can be worked out".

Trump has also threatened to introduce tariffs - a tax on imports - on goods from Canada and Mexico, but paused these for 30 days after both countries agreed to boost border security. The US president has said tariffs are needed to help the American economy and to "protect" the country from the "major threat of illegal aliens and deadly drugs".