Trump seeks Mexican import tax to pay for border wall

President Donald Trump will seek a tax on goods imported from Mexico and use the revenue to build a border wall, the White House spokesman has said.

The plan was announced just after the Mexican president cancelled a visit to Washington, amid a row sparked by the question of who will pay for the wall, BBC reports.

But soon after revealing it, the White House said that was only one option.

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

Making Mexico foot the bill - which Republicans say could be $12-15bn - was one of his key election campaign pledges.

But President Enrique Pena Nieto has always insisted that will not happen and on Thursday he pulled out of next week's White House meeting.

Hours later, White House spokesman Sean Spicer told reporters the president had discussed the funding proposal with lawmakers, and it could be part of a tax reform package the US Congress is planning.

He said that a 20% tax could generate approximately $10bn (£8bn) in tax revenue per year.

"Right now our country's policy is to tax exports and let imports flow freely in, which is ridiculous", Mr Spicer said aboard Air Force One, adding that the tax will "easily pay for the wall".

But Reince Priebus, the White House chief of staff, later said that the border tax is only one of several options being considered.