"The US has a 60 billion dollar trade deficit with Mexico". The decision was made after Trump signed an executive order that would push the construction of the Mexican border wall and forcing Mexico to pay for it.
Mexico and the United States will be stuck at an impasse unless they solve Trump's "unacceptable" demand of payment for the border wall, Mexico's Economy Minister Ildefonso Guajardo said on Friday.
Pena Nieto sent out a message that his country will not pay for the wall Trump is proposing.
The two leaders had been scheduled to discuss the matter at the White House next week.
The White House later said that the import tax is only one option the Trump administration is considering. "We have no choice".
Within a few days after Trump became officially president, Israel announced approval to build thousands of new settlement units in the West Bank, a decision which was slammed by the United Nations and several worldwide bodies. "We've got to get this thing done because we said we would do it, and now we have to deliver". "This is something that we've been in close contact with both houses in moving forward and creating a plan".
Mr Trump said the call was friendly and he looked forward to renegotiating the USA trade relationship with Mexico in the future.
A 20 percent tariff would represent a huge tax increase on imports to the US, raising the likelihood of costs being passed on to consumers. That's because Mexico is the third-largest exporter of goods to the USA, behind Canada and China. The other half face import tariffs averaging 2 percent.
Among other imports from Mexico, the USA got $11.3 billion worth of oil came from Mexico in 2015 (the latest year for which data was available), according to UN Comtrade, which keeps data on trade. The U.S. also relies heavily on Mexico for machinery, oil and agricultural products.
The president's executive orders also call for hiring 5,000 additional border patrol agents and 10,000 more immigration officers, though the increases are subject to the approval of congressional funding. But Senate Republicans, who are not sold on the House GOP tax plan, began to raise questions.
Earlier this month, Trump called that concept confusing.
Spicer didn't release any detail about how the new tax will work.
"Most illegal immigration is coming from our southern border", Trump said.
On Trump, Slim said: "He is no Terminator; he's a negotiator".
Trump's press secretary Sean Spicer said that they were looking for a date to schedule a new meeting in the future.
Mr. Trump has suggested some of the $25 billion in annual remittances that migrants return home would be retained to pay for the border wall.