Trump proposes big import tax, triggering fight with Mexico

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WASHINGTON (AP) - President Donald Trump has triggered a diplomatic clash and a fresh fight over trade with his order to wall off America's border with Mexico.

Mexican President Enrique Pena Nieto scrapped his scheduled trip to Washington next week.

Trump insists that Mexico will pay for construction of the massive wall, though he's never specified how Mexico would fund the project or how he would compel payments if Pena Nieto's government refuses.

White House press secretary Sean Spicer told reporters the president is considering a 20 percent import tax on goods from Mexico to foot the bill. The U.S. and Mexico conduct some $1.6 billion a day in cross-border trade.

Spicer say the tax could raise $10 billion a year and "easily pay" the wall's estimated cost of between $12 billion and $15 billion.

The White House later tried to backtrack. Chief of staff Reince Priebus told reporters an import tax is just one idea in "a buffet of options."