Trump plans cash grab to pay for border wall

Donald Trump says he would force Mexico to pay for a border wall by threatening to cut off the flow of billions of dollars in payments that immigrants to the United States send home, an idea that could decimate the Mexican economy and set up an unprecedented showdown between the US and a key regional ally.

In a memo to The Washington Post, Trump outlined for the first time how he would seek to force Mexico to pay for his 1600km border fence, which he has made a cornerstone of his presidential campaign and which has been repeatedly scoffed at by current and former Mexican leaders.

The proposal would jeopardise a stream of cash that many economists say is vital for Mexico’s struggling economy.

But the feasibility of Trump’s plan is unclear both legally and politically, and it would test the bounds of a president’s executive powers in seeking to pressure another country.

In the memo, Trump said he would threaten to change a rule under the USA Patriot Act antiterrorism law to cut off a portion of the funds sent to Mexico through money transfers, commonly known as remittances. The threat would be withdrawn if Mexico made ‘‘a one-time payment of US$5-10 billion’’ to pay for the border wall, he wrote.

‘‘It’s an easy decision for Mexico,’’ Trump said in the memo, printed on campaign stationery emblazoned with ‘‘TRUMP Make America Great Again!’’.

After the wall was funded, Trump wrote, transfer payments could continue ‘‘to flow into their country year after year’’. He gave the memo to the Post in response to a written question provided to him before an interview last week.

Nearly US$25 billion was sent home by Mexicans living abroad in 2015, mostly in the form of money transfers, according to the Mexican central bank. In his memo, Trump said that ‘‘the majority of that amount comes from illegal aliens’’. However, the figure includes cash from around the world, not just the US.