Trump said the US would impose tariffs of 25% on Canada and Mexico, and 10% on China. Canadian energy faces a lower 10% tariff. He had threatened to impose the import taxes if the three countries did not address his concerns about illegal immigration and drug trafficking.

President Donald Trump reportedly elicited gasps from the international crowd gathered at the World Economic Forum in Davos, Switzerland, on Thursday when he suggested that Canada could become a U.S. state in order to avoid the sweeping tariffs he wants to impose.