US President Donald Trump has said that 25 per cent tariffs on Canada and Mexico will go into effect on Saturday, but he is still considering whether to tax oil from the two countries as part of the tariffs.

Trump told reporters in the Oval Office today: “We may or may not put tariffs on oil, we may decide that tonight.

He added that his decision would depend on whether the oil prices charged by the two partner countries were fair, although the basis for his tariff threats was to curb illegal immigration and the smuggling of chemicals needed to make fentanyl.

The US imported about 4.6 million barrels of oil per day from Canada and 563,000 barrels per day from Mexico in October last year, according to the Energy Information Administration.