Trump Warns Mexico Of Higher Tariffs Over Water Issue
US President Donald Trump has warned Mexico that tariffs on its exports could be increased if it does not meet water delivery obligations under a 1944 treaty. He said Mexico must release a specific volume of water to the United States by December 31 or face additional duties. The issue has affected farmers in Texas, with Washington claiming that shortages are hurting crops and livestock.
New surcharge on imports
Trump said the additional tariff could be around five percent. This would be imposed on Mexican goods entering the United States, adding to existing trade duties. The US already has several tariffs in place from earlier decisions taken in 2025. The President did not specify whether the surcharge would apply to items covered under the US-Mexico-Canada Agreement, which currently provides tariff exemptions for many trade categories.
Trade tensions and possible fallout
Mexico and the US are deeply connected through supply chains, especially in manufacturing and agriculture. Any increase in tariffs could raise costs for companies and consumers, and potentially disrupt trade. Economists have warned that further duties might lead to retaliation from Mexico, increasing uncertainty. Both governments have previously tried to resolve similar disputes through talks.
Deadline and next steps
The December 31 deadline remains firm. If Mexico does not provide the water volume requested, the US may proceed with higher tariffs. Observers say negotiations are likely before the deadline to avoid damaging trade relations between the two neighbouring countries.
