US President Donald Trump has stated that he will follow through on his commitment to levy 25% border levies, often known as tariffs, on goods from Canada and Mexico on February 1.

However, he stated that a decision on whether to include oil from those countries had not yet been made.

Speaking to reporters in the Oval Office, Trump stated that the decision was intended to address the vast number of undocumented migrants and fentanyl that breach US borders, as well as trade disparities with its neighbours.

The president also hinted that he was still preparing to put fresh tariffs on China, which he had stated earlier this month would be 10%, but provided no details.

"With China, I am also thinking about something because they are sending fentanyl into our country, and because of that, they are causing us hundreds of thousands of deaths," Mr. Trump added.

"So China is going to end up paying a tariff also for that, and we are in the process of doing that."

During the election campaign, Trump promised to impose tariffs of up to 60% on Chinese-made products, but on his first day back in the White House, he ordered his team to investigate the matter.

Since 2018, US goods imports from China have flattened, which economists ascribe in part to a series of rising tariffs imposed by Trump throughout his first term.

Earlier this month, a top Chinese official warned against protectionism as Trump's return to the president raises the prospect of a trade war between the world's two largest economies - but made no mention of the United States by name.

Addressing the World Economic Forum in Davos, Switzerland, China's Vice Premier, Ding Xuexiang, stated that his country was looking for a "win-win" solution to trade disputes and intended to increase imports.

Canada and Mexico have warned they will retaliate to US tariffs with their own measures, while also reassuring Washington that they are taking steps to resolve worries over their US borders.

Levies on US oil imports from Canada and Mexico risk jeopardizing Trump's vow to lower the cost of living.

Tariffs are an import charge on items manufactured in another country.

In theory, taxing imported commodities reduces people's willingness to purchase them as they become more expensive.

The goal is that people will purchase cheaper local products instead, so helping a country's economy.

However, the expense of taxes on imported energy might be passed on to businesses and consumers, potentially raising the prices of everything from gasoline to groceries.

Approximately 40% of the crude that passes through US oil refineries is imported, with the vast majority coming from Canada.