President Donald Trump has said the US does not need Canadian energy, vehicles or lumber as he spoke to global business leaders at the World Economic Forum.

Trump also reiterated his threat to impose tariffs on the country, saying it can be avoided if the neighbouring nation chose to "become a state" of the US.

"You can always become a state, and if you're a state, we won't have a deficit. We won't have to tariff you," he said to gasps in the hall in Davos.

Trump has threatened to impose up to 25% tariffs on Canadian imports, possibly by 1 February.