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US President Donald Trump has announced there will be taxes, called tariffs, on all goods from Mexico until illegal immigration is stopped.

In a White House statement, Mr Trump said the tariffs would rise by 5% each month until October 1, when the rate would reach 25%.

He added the tariffs would stay at that level until Mexico ends illegal immigration; this is when people illegally cross the border into the country.

"For years, Mexico has not treated us fairly - but we are now asserting our rights as a sovereign nation," the statement said.

Stopping illegal immigration was one of President Trump's key election promises when he was campaigning to become US President. It was the main reason why he promised to build a wall.

His supporters believe that the US is overwhelmed by illegal immigration and that people who work and live in the country without permission are taking advantage of the country's freedoms.

The Democrat party, who are the opposition to Donald Trump's Republican party, control the House of Representatives, which is another key part of the US government. They are taking legal action to prevent the President Trump from building a border wall, saying it would be a waste of funds and would not stop illegal immigration.

Newsround has been to the US-Mexico border to find out more about Mr Trump's proposed wall and how it affects people's lives. Click here to find out more.

Mexico was the US's second largest supplier of goods last year. America imported more than $300bn worth of products, according to records from the US government.

Mexico is known for agricultural products like avocados and tequila, but the country is also hugely involved in manufacturing, particularly for US companies.

The country builds hundreds of thousands of cars every month. It is also home to tech companies and plane manufacturers.

Mexico has already raised tariffs on some US products including apples, blueberries and pork in retaliation to the US raising tariffs.

The US president also recently raised tariffs for goods made in China, then sold in the US.

Newsround went to the US-Mexico border to find how President Trump's immigration crackdown is affecting people.

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