Speaking to reporters, White House press secretary Sean Spicer said that as part of its plans to make Mexico “pay for the wall”, the Trump administration is considering a 20% border tax on Mexican imports.

Spicer said the proposed border tax would be part of a broader tax reform proposal meant to pay for the wall along the US-Mexico border.

The highly sensitive subject of payment for the “wall” is the reason why president Pena Nieto cancelled a trip to the US on January 31 to discusses the renegotiation of NAFTA.

While Nieto has said Mexico will not pay for the wall, Trump has repeatedly said that Mexico will end up paying, even if the US makes the initial payment; as reproted earlier, Republicans have estimated the wall will cost between $12 billion to $15 billion.

Since roughly 80% of Mexican exports go to the US, Mexico finds itself in a very difficult negotiating position, in which Trump has all the leverage.

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