US President Donald Trump has announced tariffs on all goods coming from Mexico in a bid to curb illegal immigration.
In a tweet, Mr Trump said that from 10 June a 5% tariff would be imposed and would slowly rise “until the Illegal Immigration problem is remedied”.
President Trump has declared a national emergency to tackle what he claims is a crisis at the US southern border.
Border agents say they are overwhelmed, but critics say they are mishandling and mistreating migrants.
Jesus Seade, Mexico’s top diplomat for North America, said the the tariffs would be “disastrous”.
“If this is put in place, we must respond vigorously,” he told reporters.
During his election campaign and throughout his time in office, President Trump has sought funds to build a wall on the US-Mexico border.
He declared a national emergency in February in an attempt to divert federal funds for a barrier wall, but a judge blocked his efforts in May.
The White House said on Thursday that the president would use the International Emergency Economic Powers Act to implement the new tariffs on Mexico.
The announcement came the same day that the White House told Congress it planned to pursue a new trade deal with Mexico and Canada