U.S. President Donald Trump said on Friday that the United States and Mexico were making progress on a trade deal, and warned Canada he would tax their auto exports if an agreement cannot be reached with Ottawa.

"Deal with Mexico is coming along nicely. Autoworkers and farmers must be taken care of or there will be no deal. New President of Mexico has been an absolute gentleman," Trump said on Twitter.

"Canada must wait. Their Tariffs and Trade Barriers are far too high. Will tax cars if we can't make a deal!" he said.