Trump told journalists on Thursday that he would put tariffs on cars or close the border, adding that he would also give Mexico a year to try to stop the drug inflow before introducing the tariffs.
"A lot of good things are happening with Mexico. Mexico understands that we're going to close the border, or I'm going to tariff the cars," Trump told reporters at the White House.
US President Donald Trump has repeatedly pledged to build a barrier on the US southern border or shut it due to thousands of illegal migrants crossing into the United States from the neighbouring country.
The same day, Mexican President Andres Manuel Lopez Obrador said that neither Mexico City nor Washington would benefit from the closure of the border.
Thousands of migrants cross the US border with Mexico every month. According to the Mexican Ministry of Internal Affairs, only in February, more than 76,000 migrants were detained after trying to get into the United States. For March, this figure is expected to increase to 100,000 people.