December 10, 2025

Trump warns of 5% tariff hike over Mexico water dispute

trump warns of 5% tariff hike over mexico water dispute
Photo source: AP News

President Donald Trump has escalated tensions with Mexico by threatening to increase tariffs by 5% unless Mexico promptly supplies additional water to aid American farmers. The dispute centres on a long-standing treaty that governs water sharing between the two countries, specifically involving the Rio Grande river.

The 1944 treaty obliges Mexico to deliver 1.75 million acre-feet of water to the United States every five years. This water is routed through an interconnected system of dams and reservoirs that span the border. However, Mexico has reportedly fallen behind on its commitment, allegedly owing the U.S. 800,000 acre-feet over the past half-decade.

Trump demanded that Mexico release 200,000 acre-feet of water before December 31, with further deliveries to follow shortly thereafter.

“As of now, Mexico is not responding, and it is very unfair to our U.S. Farmers who deserve this much needed water,” Trump stated on social media. “That is why I have authorized documentation to impose a 5% Tariff on Mexico if this water isn’t released, IMMEDIATELY.”

The U.S. farming community, particularly in Texas, has been severely impacted by the water shortage, with crops and livestock suffering from the reduced supply. The situation has intensified worries amid ongoing drought conditions that strain water resources across the region.

Mexico maintains that drought has limited its capacity to meet water delivery obligations. A spokesperson from Mexico’s Ministry of Economy had yet to comment on Trump’s announcement at the time of reporting.

mexico water
Photo source: CNBC

This conflict reflects broader challenges in managing cross-border water resources, which are increasingly strained by climate change, population growth, and agricultural demands.

In April of this year, U.S. Agriculture Secretary Brooke Rollins confirmed that Mexico agreed to increase water shipments to Texas in order to mitigate shortages under the treaty, but progress since then remains unclear.

Observers warn that failure to resolve these water-sharing issues could hinder broader cooperation between Mexico and the U.S. on trade and security. They suggest that both nations need to renew diplomatic efforts and invest in infrastructure to improve water storage and distribution systems to prevent future disputes.

As the deadline looms, the threat of tariff hikes adds economic pressure to an already delicate situation. The outcome of this standoff will play a significant role in the future management of natural resources and bilateral relations in North America.

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