Mexican president's US visit cancellation agreed mutually: Trump

"The President of Mexico and myself have agreed to cancel our planned meeting scheduled for next week," Trump said in his remarks at Republican retreat in Philadelphia.

"Unless Mexico is going to treat the US fairly with respect, such a meeting would be fruitless and I want to go in different route. We have no choice," he said.

"Border security is a serious, serious national issue and problem. A lack of security poses a substantial threat to the sovereignty and safety of the United States of America and its citizens," Trump said.

"Most illegal immigration is coming from our southern border. I've said many times that the American people will not pay for the wall. I've made that clear to the government of Mexico," he asserted.

The North American Free Trade Agreement (NAFTA), he said, has been a terrible deal, a total disaster for the US from its inception, costing us as much as USD 60 billion a year with Mexico alone in trade deficits.

"You say, who negotiates these deals? Not to mention, millions of jobs and thousands and thousands of factories and plants closing down all over our country," he said.

"On top of that are the trillions of dollars the US taxpayers have spent to pay the costs of illegal immigration. Much of it is then been sent back, and much of it goes back to other countries, and oftentimes because they don't respect us, the other countries will not accept the criminals that we send back to them that are illegally in our country," Trump said.

"I promise you, they will start accepting them again, quickly. We are not going to them any longer," he said amidst applause from the audience.

"I will not allow the taxpayers or the citizens of the US to pay the costs of this defective transaction, NAFTA, one that should have been renegotiated many years ago except the politicians were too preoccupied to do so. Now these people are not in that category, you understand. This is a different group. I think," Trump said.

Trump said his administration is working on a tax reform bill that will reduce trade deficits, increase American exports and will generate revenue from Mexico that will pay for the wall if the US decides to go that route.

"It is time that the American people had a president fighting as hard for its citizens as other countries do for theirs, and that's exactly what I'm going to do for you Believe me," he said.

White House Press Secretary Sean Spicer said the line of communication is open with Mexico.

"We have been in constant contact with the Mexican government. As you know, Mexican officials were here earlier this week. I think we mutually decided to postpone the meetings but ensure that lines of communications remained open," Spicer said.