The President of the United States announced an additional 5% tariff on Mexico if it fails to comply with a vital water supply agreement
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U.S. President Donald Trump warned on Monday that he would impose an additional 5% tariff on Mexico if that country's government doesn't immediately release an additional volume of water intended for agricultural producers in Texas.
The demand is based on the 1944 treaty that regulates water distribution between both countries and requires Mexico to deliver 1.75 million acre-feet (2,158,590,000 cubic meters) from the Rio Grande every five years.
In a message posted on Truth Social, Trump stated that Mexico has an outstanding debt of approximately 800,000 acre-feet of water corresponding to the five-year cycle that is about to end.
El presidente estadounidense señaló como se ven perjudicados los granjeros estadounidenses por el incumplimiento por parte de México de un tratado de suministro hídrico de 1944
According to the president, the noncompliance is affecting crop production and livestock activity in Texas, where the reduction in water supply has caused concern among farmers. Trump indicated that he has authorized the necessary documentation to activate the tariff if the water is not released "immediately."
The president demanded that Mexico deliver at least 200,000 acre-feet before December 31 and continue with additional shipments after that date. He maintained that so far the Mexican government has not offered a satisfactory response and described the situation as detrimental to U.S. producers who depend on binational water resources to cope with drought conditions.
For now, Mexico's Ministry of Economy has not issued any comments regarding the warning. Mexican authorities have argued on previous occasions that they are facing a severe drought situation that has reduced water availability in several border states, which would make it difficult for them to comply with the treaty without affecting domestic supply.
El gobierno mexicano no respondió acerca de si honrará el tratado y suministrará algo de lo adeudado a los Estados Unidos
The issue of compliance with the agreement is not new. In April, U.S. Secretary of Agriculture Brooke Rollins reported that Mexico had agreed to increase its water shipments in order to reduce the accumulated deficit. However, the outstanding volume remains considerable, and the pressures resulting from extreme weather events have heightened tensions regarding the distribution of the resource.
The warning of a new tariff revives an effective tool that was already used during the Trump administration to exert pressure in bilateral negotiations. The measure, if applied, could add a new element of friction to the trade relationship between both countries, while discussions continue regarding compliance with the 1944 treaty and water availability in the border region.
