Mexico will wait and see if U.S. President Donald Trump goes through with his threat to slap tariffs on its southern neighbor on Tuesday, the nation's president said on Monday, adding that Mexico has back-up plans in case the tariffs go into place.

Only a couple years ago, manufacturers were fighting for space to relocate their operations to Monterrey, an industrial city in Mexico’s northeast, as they sought to move closer to the US and its vast consumer market.

White House officials have said Trump is considering reducing the tariff level after some progress from Mexico and Canada on reducing illegal immigration and the flow of fentanyl into the U.S.