He added that paying for Mr Trump's wall "is not negotiable" for Mexico.

Mr Trump has discussed the proposal for a 20 per cent import tax on Mexican goods with Republican leaders in Congress, and wants it to be part of a comprehensive tax reform package.

Mr Spicer said: "This is something that we’ve been in close contact with both houses in moving forward and creating a plan. This is, by the way, a practice that 160 other countries do.

"Right now our country’s policy is to tax exports and let imports flow freely in, which is ridiculous."

Mr Spicer later said the 20 per cent import tax plan was just one of several options on the table for paying for the wall.

He said Mr Trump has yet to make a final decision about how the US will recoup the costs.

Reince Priebus, Mr Trump's chief of staff, added that the administration has "a buffet of options" to pay for the wall on the border.

Mexican president cancels trip

Mr Nieto on Thursday canceled a summit with Mr Trump in Washington next week as relations between the two countries plunged to a new low.

The border wall was a signature campaign promise by Mr Trump and he signed an executive order on Wednesday indicating it would be built, with Mexico paying for it.