Mexican president Enrique Pena Nieto said he has cancelled his forthcoming trip to Washington.
Earlier, Donald Trump said Mexico’s president should consider cancelling the meeting in Washington next week if the country refuses to pay for a border wall.
The US president suggested on social media that they should skip the talks.
Mr Trump has pledged to start building a US-Mexico border wall and vowed to make Mexico pay for it.
Mexico opposes the wall, and the government has repeatedly said it will not foot the bill.
Mexican officials said on Wednesday that Mr Pena Nieto was “considering” cancelling the meeting, scheduled for January 31.
The country’s former foreign relations secretary Jorge Castaneda told local media: “Pena Nieto has no other choice but to say ‘I’m not going’.”