Mexico warns of retaliation to wall tax

An emboldened Mexico hardened its opposition to U.S. President Donald Trump on Friday by saying it would retaliate if the United States imposed a border tax and that it can afford to lose financial aid that might be pulled to pay for a border wall.

Foreign Minister Luis Videgaray said Mexico could respond to any tax the United States were to unilaterally impose on imports from its southern neighbor to finance the wall with levies on select goods, aimed at U.S. regions most dependent on exports south of the border.

"Without a doubt, we have that possibility, and what we cannot do is remain with our arms crossed," Videgaray said in a radio interview. "The Mexican government would have to respond."

The statements by Videgaray and Interior Minister Miguel Angel Osorio Chong, who minimized the potential impact of the rumored loss of U.S. security aid, toughened the defiant tone from Mexico since President Enrique Pena Nieto last month canceled a trip to meet Trump over the wall dispute.

Mexicans are angry at Trump's calls for U.S. firms not to invest south of the border, insults to immigrants and threats to make Mexico finance the border wall. The peso currency has weakened on concerns he will hurt Latin America's No. 2 economy.

Mexican officials were publicly blunt with U.S. Secretary of State Rex Tillerson and Homeland Security John Kelly over Trump's immigration and trade proposals in a visit to Mexico on Thursday.

Osorio Chong told local radio that Mexican officials' rejection of Trump's bid to send non-Mexican illegal migrants from the United States to Mexico was "very clear."

"They asked us if [non-Mexican illegal immigrants] could be here while they are going through the legal process there. We said that there was ... absolutely no way."