US motorists should brace for a hike in gasoline prices under the incoming Trump administration plans to slap tariffs on imports of products from Canada and Mexico.

President-elect Donald Trump is vowing to raise tariffs on Canadian, Mexican and Chinese goods, which is likely to mean higher prices for consumers, according to an MIT economist.

Trump has pledged to punish Canada and Mexico for “ bringing Crime and Drugs at levels never seen before ” by imposing a 25 percent tariff on all imported goods from U.S. neighbors — with no exceptions made for oil and natural gas. Trump promised an additional 10 percent tax on goods from China.

President-elect Donald Trump's threat to impose tariffs on Canada, China and Mexico on the first day of his administration could dramatically raise prices for Americans on everything from cars to clothes to oil.

The dollar is already surging to two-year highs against currencies of America's main trading rivals, offsetting the very competitiveness Trump's tariff plans aim to protect.

U.S. President-elect Donald Trump said on Monday that on his first day in office he will impose a 25% tariff on all products from Mexico and Canada, and an additional 10% tariff on goods from China. The announcement sparked a dollar rally.