Trump threatens Mexico with tariffs over water dispute
In a new escalation of trade and diplomatic relations between the two neighbors, US President Donald Trump threatened to impose additional tariffs of 5% on all imports from Mexico, citing Mexico City's violation of a historic water-sharing agreement, which he said harmed the agricultural sector in Texas.
Details of the threat and US demands
Trump announced via his social media platform Truth Social that tariffs would go into effect if Mexico did not immediately release the water allocations owed to the United States. The US president set a clear deadline, demanding that Mexico release 200,000 feddans (approximately 1.2 hectares) of water by December 31st, as part of a total water debt of 800,000 feddans (approximately 1.2 hectares), with the remaining amount to be delivered shortly thereafter.
Background of the 1944 Water Convention
The dispute stems from a 1944 water treaty between the two countries, which regulates the management of transboundary water resources. Under this agreement, the United States is obligated to supply Mexico with water from the Colorado River, and in return, Mexico is obligated to send specific quantities of water to the United States via the Rio Grande (which forms a significant portion of the natural border between the two countries). This agreement is considered a cornerstone of agriculture in the arid border regions, but recurring droughts and occasional mismanagement have led to the accumulation of "water debt.".
Economic repercussions and the Texas farmers' crisis
Trump pointed out that the Mexican delays had caused significant damage to crops and livestock in South Texas, where farmers rely heavily on these water flows. The US president linked this threat to his efforts to support farmers, as his statement coincided with the announcement of a massive $12 billion aid package for the US agricultural sector, aimed at mitigating the damage caused by his administration's trade policies and tariff wars with several international partners.
The future of trade relations and the USMCA agreement
This threat comes at a sensitive time for economic relations, as Mexican goods not covered by the United States-Mexico-Canada Agreement (USMCA) are already subject to a 25% tariff. Observers believe that imposing a new 5% tariff could lead to broader tensions affecting supply chains and commodity prices in the US market, especially since Mexico is the United States' largest trading partner. Trump previously used tariffs as leverage in April on the same issue, prompting an immediate response from Mexico—a scenario the US administration now hopes to repeat.
