Donald Trump signed an executive order to build a border wall between the US and Mexico
Enrique Peña Nieto announced he would not be travelling to the United States next Tuesday anymore as Mr Trump insisted Mexico would have to pay for a wall between America and Mexico.
Just hours before Mr Nieto repeated his country "will not pay for any wall" and said he would not be cancelling his trip later this month.
Mr Trump hit back by saying "it would be better to cancel the upcoming meeting".
Soon after Mr Nieto announced the trip was off.
The Mexican president tweeted: "This morning I informed the White House I will not be attending the meeting scheduled for next Tuesday with @POTUS.
"Mexico reiterates its willingness to work with the United States to achieve agreements in favour of both nations."
Esta mañana hemos informado a la Casa Blanca que no asistiré a la reunión de trabajo programada para el próximo martes con el @POTUS.
— Enrique Peña Nieto (@EPN) January 26, 2017
At 2.12pm GMT, Mr Trump tweeted: "The US has a 60 billion dollar trade deficit with Mexico.
"It has been a one-sided deal from the beginning of NAFTA with massive numbers of jobs and companies lost.
"If Mexico is unwilling to pay for the badly needed wall, then it would be better to cancel the upcoming meeting."
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