Mexico warns Trump over border wall funding

Mexico has warned the US against imposing a unilateral tax on Mexican imports to finance a border wall between the two countries.

Foreign minister Luis Videgaray said that Mexico could respond in kind – placing tariffs on exports to the US on products its businesses rely upon.  

“Without a doubt, we have that possibility, and what we cannot do is remain with our arms crossed,” he said in a radio interview. “Mexico will face this as a reality and not just as a rhetorical threat because we have realized that rhetorical threats come and go.”

According to reports, the foreign minister has identified states including Texas, Iowa and Wisconsin as possible targets for retaliatory tariffs. Mexico is by far the top destination for Texan exports, with goods worth over $115 million exported there in 2015, according to the US Department of Commerce.

Videgaray’s warning came after US President Donald Trump said that the wall would be built “soon- way ahead of schedule”.

Addressing the Conservative Political Action Congress in Maryland on Friday, Trump pledged to always put American citizens first and to build a “great, great border wall”.

Trump has repeatedly pledged that Mexico will pay for the wall, which could cost up to $21.5 billion, according to Reuters, which cited a Department of Homeland Security internal report. The figure is much higher than Trump’s estimated price tag of $12 billion.

The president has proposed to levy a 20% tax on Mexican imports to pay for a border wall.

US Secretary of State Rex Tillerson and Homeland Security Secretary John Kelly on Thursday met their Mexican counterparts in Mexico City. However, neither side made any mention of the wall in the press conference after their closed-door meetings.