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Trump Threatens 5% Tariff on Mexico Over Rio Grande Water Shortfall

The ultimatum comes in a treaty fight complicated by drought with a year-end delivery deadline nearing.

Overview

  • President Donald Trump said he has authorized documentation for a 5% tariff unless Mexico releases 200,000 acre-feet of Rio Grande water by December 31, asserting more than 800,000 acre-feet are owed from the last five-year cycle.
  • Under the 1944 water-sharing treaty, Mexico is to deliver 1.75 million acre-feet to the U.S. over five years, while the U.S. supplies Mexico with Colorado River water.
  • Preliminary government data indicate Mexico underdelivered in the cycle that ended in October, with Texas officials citing severe agricultural losses tied to reduced flows.
  • Mexico says it has complied to the extent water is available during multi-year drought, and officials say proposals have been submitted and talks are continuing.
  • An April arrangement sought to boost transfers from Mexican reservoirs and tributaries, but compliance and accounting remain disputed as the tariff threat raises trade stakes.