On Tuesday Trump's campaign released a memo in which the tycoon announced his intention to change a rule under the Patriot Act that would allow the US federal government to deduct a percentage of the money that immigrants living in America send back home to Mexico.
The Republican front-runner also plans to prohibit non-Americans who fail to provide proof of their legal status in the country from wiring money outside of the US.
Trump claimed that the measures would be unnecessary if Mexico agreed to pay for his trademark wall.
"It's an easy decision for Mexico: make a one-time payment of $5-10 billion to ensure that $24 billion continues to flow into their country year after year," the memo reads.
When asked about Trump's proposal on Tuesday, President Barack Obama merely replied: "Good luck with that."
According to the Mexican central bank, in 2015 alone some $24.8 billion was sent to Mexico from the US. Trump's suggestion, if implemented, would do significant damage to the Mexican economy. President Obama, in earlier remarks, claimed it would drive even more immigrants to seek a better life in America.
"People expect the President of the United States and the elected officials in this country to treat these problems seriously, to put forward policies that have been examined, analyzed are effective, where unintended consequences are taken into account," President Obama explained. "They don't expect half-baked notions coming out of the White House. We can't afford that."
Trump has stated that his wall would cost between $10 billion and $12 billion. Mexico's President Enrique Peña Nieto has stated his country will not build or pay for a wall between the countries.