The United States and Mexico have moved to calm the waters as the row over a border wall threatens boil over and damage trade between the neighbours.
President Enrique Peña Nieto and President Trump spoke by phone for an hour.
Both camps said the conversation had been productive, but fundamental differences remain.
Mexican billionaire Carlos Slim called on both men to reach agreement as hostility serves no purpose:“I am not thinking of a catastrophe, I think in the movies. Trump is not the terminator, he is the negotiator. He’s a negotiator.”
Mexico is the third largest global trader with the United States and trade war as a result of Trump’s wall will threaten both economies.
However, Trump continues to talk tough:
“As you know, Mexico with the United States has out-negotiated us and beat us to a pulp through our past leaders. They’ve made us look foolish. We have a trade deficit of $60 billion with Mexico.”
The Mexican president’s office said that both leaders
“agreed to solve these differences as part of an all-encompassing discussion of all aspects of the bilateral relationship.”