Trump seeks import tax to pay for border demarcation

There are reports that President Donald Trump will seek a tax on goods imported from Mexico in other to build a border wall.

According to a report by BBC, the US president has said the revenue from the tax will be used by the US government to build a border wall.

However, the plan which was recently announced saw the Mexican president cancelling a visit to Washington, amid a row sparked by the question of who will pay for the wall.

Mr Trump on Wednesday signed an executive order to create a wall on the US southern border with Mexico.

However, President Enrique Pena Nieto insisted that Mexico will not pay for the border wall, hence, cancelled his proposed meeting at the White House.

White House spokesman Sean Spicer reportedly told reporters that Trump had discussed the funding proposal with lawmakers, and the US Congress is considering making it part of a tax reform package.

Spicer said that a 20% tax could generate approximately $10bn (£8bn) in tax revenue per year adding that the tax will "easily pay for the wall".

The report also revealed that Mexico and US exchange about $1.6bn (£1.27bn) per day in cross-border trade.