The US President has authorized new tariffs effective immediately, accusing Mexico of owing massive water debts that are “decimating” Texas farmers.
President Donald Trump just slapped a 5% tariff on everything coming in from Mexico, and it all comes down to water. In a statement released Monday (8 December), Trump said he’s demanding Mexico release 200,000 acre-feet of water by the end of the year to start paying down what he claims is a massive debt that’s crippling American farmers. The tariff kicks in immediately.
At the heart of this fight is the 1944 Water Treaty, which says Mexico has to deliver 1.75 million acre-feet of water to the US from the Rio Grande over a five-year cycle. According to Trump, Mexico has fallen more than 800,000 acre-feet behind over the past five years. US officials say that shortfall has forced Texas farmers to slash irrigation and watch their crop yields drop.
Trump’s ultimatum is pretty straightforward: Mexico needs to release that initial 200,000 acre-feet by December 31, and then settle the rest of the debt “soon after.” Until that happens, the 5% tariff stays. This ratchets up the pressure just months after the two countries thought they’d worked things out with a temporary deal back in April.
“Mexico continues to violate our comprehensive Water Treaty, and this violation is seriously hurting our beautiful Texas crops and livestock,” Trump wrote on Truth Social.
“As of now, Mexico is not responding, and it is very unfair to our U.S. Farmers who deserve this much needed water. That is why I have authorized documentation to impose a 5% Tariff on Mexico if this water isn’t released, IMMEDIATELY,” he added.
Water shortages have been causing friction between the US and Mexico for years now, made worse by severe droughts in northern Mexico. Mexican officials have argued before that their own reservoirs are dangerously low. Meeting treaty obligations, they say, would wreck their local agriculture. Back in 2020, tensions got so bad that Mexican farmers actually seized a dam to stop water from being sent north.
Here’s an interesting twist: under that same 1944 treaty, the US is supposed to send 1.5 million acre-feet of water annually from the Colorado River to Mexico. The US has generally hit that mark, but recently denied Mexico’s request for extra “non-treaty” water as payback for the current shortfall.
Throwing tariffs into the mix is going to make things messy between these two neighbors. Mexican President Claudia Sheinbaum has said Mexico is doing what it can “to the extent water is available,” but she’s facing serious domestic pressure to protect local resources. Markets are watching closely now to see how Mexico responds officially and whether they hit back with their own measures.
Also Read / Pakistan-India Water Treaty Suspension: Implications and Insights.
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