US President Donald Trump has threatened to impose an additional 5% tariff on Mexico, citing a water-sharing dispute between the two countries. Trump alleges that Mexico is violating a 1944 treaty under which the United States shares water from the Colorado River in exchange for flows from the Rio Grande, which forms part of the border between the two nations.
According to Trump, Mexico owes 800,000 acre-feet of water to the United States under the terms of the treaty. He has demanded that Mexico release 200,000 acre-feet of water before December 31st, with the rest to follow soon after. Trump made the announcement on his social media platform, stating that crops and livestock in Texas are being severely affected by the dispute.
The move comes as Trump announced a $12 billion aid package for the US agriculture industry, which has been impacted by his trade and tariff policies. This is not the first time Trump has threatened Mexico with economic repercussions over the water dispute. In April, he made a similar threat, prompting Mexico to send water and reaffirm its commitment to the 1944 treaty.
Mexican goods currently face a 25% tariff unless they fall under the United States-Mexico-Canada Agreement (USMCA), a free trade deal struck during Trump’s first term. The US is aiming to renegotiate the agreement in 2026. Trump recently met with his Mexican counterpart, Claudia Sheinbaum, and Canadian Prime Minister Mark Carney to discuss the future of the trade deal.
The water dispute and potential tariffs have significant implications for the trade relationship between the US and Mexico. The US agriculture industry is already facing challenges due to trade tensions, and the additional tariffs could exacerbate the situation. The dispute also highlights the complexities of international trade agreements and the need for cooperation between nations to resolve disputes and ensure fair trade practices.
The situation is being closely monitored, and the outcome of the dispute could have far-reaching consequences for the economies of both countries. As the deadline for Mexico to release the water approaches, the international community waits to see how the situation will unfold and what impact it will have on the trade relationship between the US and Mexico.