Mexico has condemned a US suggestion that it may
impose a 20% tax on Mexican imports to pay for
President Donald Trump's planned border wall.
Foreign Minister Luis Videgaray said such tax would
make Mexican imports more expensive for US
consumers and they would end up paying for the wall.
The Mexican president earlier cancelled a visit to the
US amid the row of who would pay for the barrier.
The planned wall was one of Mr Trump's key
election campaign pledges.
Earlier this week, the president signed an executive
order to create a wall along the 2,000-mile (3,200km)
US-Mexico border.
Speaking on Thursday, Mr Videgaray said: "A tax on
Mexican imports to the United States is not a way
to make Mexico pay for the wall, but to a way make
the North American consumer pay for it through more expensive avocados, washing machines, televisions.''
He also stressed that paying for Mr Trump's wall
"is not negotiable" for Mexico.
Earlier on Thursday, White House spokesman Sean
Spicer said a 20% tax could generate approximately
$10bn (£8bn) in tax revenue per year.
"Right now our country's policy is to tax exports and
let imports flow freely in, which is ridiculous", he said,
adding that the tax will "easily pay for the wall".
But Reince Priebus, the White House chief of staff, later
said that the border tax is only one of several options
being considered.
President Enrique Pena Nieto would have been perceived
as very weak if he had travelled to Washington for talks
and for many here it would have been tantamount to accepting Mr Trump's central claim - that Mexico will
pay for the US border wall.
If that is not up front, then it may come eventually -
perhaps under the latest proposal being floated by
Donald Trump's White House, a massive 20% border
tax on Mexican imports.
As Mexico exports some $300bn of goods a year to
the US, the impact of such a proposal would be felt
across the country.
Furthermore, the idea of funding a wall through a new
tariff is simply unacceptable to most ordinary Mexicans
who view the wall as unnecessary, inhumane, expensive
and ineffective.
As their elected leader, at least for the next 18 months, Enrique Pena Nieto was left with little option but to deliver
that message to the White House - by not going there in person.
The rift between the neighbours and trade partners has depends just days into Mr Trump's presidency.
After Mexican President Enrique Pena Nieto pulled out
of next week's summit, Mr Trump said the meeting
would have been "fruitless" if Mexico didn't treat the US
"with respect" and pay for the wall.
Earlier Mr Pena Nieto said he "lamented" the plans for
the barrier.
In a televised address, the Mexican leader told the nation:
"I've said time and again: Mexico won't pay for any wall."
Republican Senator Lindsey Graham warned that US consumers may wind up bearing the cost of the
proposes tax.
"Any tariff we can levy they can levy. Huge barrier
to economy growth", he wrote online.
"Build that wall" was one of Mr Trump's campaign
rally slogans.
Mr Trump's executive orders also called for hiring
10,000
immigration officials to help boost border patrol efforts.
"A nation without borders is not a nation," Mr Trump
said. "Beginning today the United States gets back
control of its borders."
In other developments:
UK Prime Minister Theresa May addressed a group of
Republican Congressmen ahead of talks with
President Trump on Friday. She called for an end to
foreign intervention overseas to "remake the world in
our own image"
Chief White House strategist Stephen
Bannon said that the media should "keep its mouth
shut and just listen for a while" and that he views the
press as "the opposition party"
The White House is planning additional executive
actions in the coming days, one of which will reportedly
curb refugee admissions
Mr Trump told US media that
he had made his selection for
Supreme Court nominee, and will announce the name next
Thursday

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