(SkyNews) — Mexico has threatened to retaliate if US President Donald Trump imposes a border tax to pay for his controversial wall.
Mr Trump has used almost every post-election speech to reiterate his promise to build a barrier separating his country from its southern neighbour.
Proposals are to be sought next month for the wall’s design.
An executive order on 25 January for the wall’s construction also asked government agencies to report on the financial assistance given to Mexico in the past five years.
This led to speculation Mr Trump may also divert US aid to pay for the wall.
But Mexico’s foreign minister Luis Videgaray said his country would respond to any tax levied by the US and that they did not actually need financial help.
He warned Mexico could impose levies on select goods aimed at US regions most reliant on exports south of the border, such as Iowa, Texas and Wisconsin.
Speaking during a radio interview, Mr Videgaray said: “Without a doubt, we have that possibility and what we cannot do is remain with our arms crossed.
“The Mexican government would have to respond.”
But he added that levies were “not our preference”.
“Mexico believes in free trade.”
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