He also signed an action to strip funds from US cities that are sanctuaries for undocumented immigrants.
Mr Trump said in a TV interview with ABC News that Mexico would "absolutely, 100%" reimburse the US for his wall.
But Congress would have to approve funding for the structure, which is estimated to cost billions of dollars. Building a 2,000-mile barrier along the Mexican border was one of Mr Trump's key pledges in the election campaign.
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