US President Donald Trump has suggested he may exempt Mexico and Canada from his controversial tariff plan if they comply to with his wishes on a major trade agreement.

"We have large trade deficits with Mexico and Canada. NAFTA, which is under renegotiation right now, has been a bad deal for U.S.A. Massive relocation of companies & jobs. Tariffs on Steel and Aluminum will only come off if new & fair NAFTA agreement is signed. Also, Canada must treat our farmers much better. Highly restrictive. Mexico must do much more on stopping drugs from pouring into the U.S. They have not done what needs to be done. Millions of people addicted and dying," Trump tweeted.

As reported earlier, US will impose customs tariffs on steel and aluminum imports- 25 percent and 10 percent respectively.