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Trump Threatens 5% Tariff, Demands Mexico Release 200,000 Acre-Feet by Dec. 31

Mexican officials opened talks with U.S. counterparts, citing drought and delivery constraints under the 1944 treaty.

Overview

  • Trump authorized a 5% tariff as leverage if Mexico does not deliver 200,000 acre-feet of Rio Grande water by the end of the year, part of what he says is an 800,000-plus acre-foot shortfall.
  • International Boundary and Water Commission data show Mexico delivered well under 30% of its required volume in the five-year cycle that ended in October 2025.
  • President Claudia Sheinbaum says Mexico has complied to the extent water is available during multi-year drought, submitted short-term proposals, and points to pipeline capacity as a limit on rapid releases.
  • Bilateral meetings were set for Dec. 9–10 to negotiate next steps as the Dec. 31 deadline approaches and the tariff threat remains in play.
  • Texas leaders and farm groups report major economic harm from the shortfall, while trade analysts note a 5% add-on would stack atop existing tariffs and face questions under USMCA and presidential tariff authority.