Donald Trump is set to impose a five per cent tariff on all Mexican imports into America, until illegal immigration is stopped.
The move means that tariffs will affect all goods coming into the US from Mexico from June 10.
The US President tweeted: "The tariff will gradually increase until the illegal immigration problem is remedied, at which time the tariffs will be removed."
In a statement issued by the White House, Trump said the levy would increase to 10 per cent on July 1, 15 per cent on August 1, 20 per cent on September 1 and to 25 per cent on October 1.
The statement added: "As everyone knows, the United States of America has been invaded by hundreds of thousands of people coming through Mexico and entering our country illegally.
"This sustained influx of illegal aliens has profound consequences on every aspect of our national life - overwhelming our schools, overcrowding our hospitals, draining our welfare system, and causing untold amounts of crime.
"Gang members, smugglers, human traffickers, and illegal drugs and narcotics of all kinds are pouring across the southern border and directly into our communities.
"Thousands of innocent lives are taken every year as a result of this lawless chaos. It must end now!"
Trump added that Mexico had the power to stop illegal immigration - and suggested sending members of caravans passing through the country back to their home countries.
