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Trump Threatens 5% Tariff Over Water Shortfall as U.S. Demands Year-End Delivery

Mexico launches technical talks to avoid tariffs, citing drought-driven delivery constraints under the 1944 treaty.

Overview

  • Trump says Mexico owes more than 800,000 acre-feet and insists on 200,000 acre-feet by December 31, authorizing steps to levy a 5% tariff if water is not released.
  • Sheinbaum announced a virtual meeting at 2 p.m. Tuesday between Conagua, CILA, SRE, SADER and U.S. counterparts to review volumes and timelines.
  • Mexican officials acknowledge an outstanding balance near 1,000 million cubic meters but invoke treaty provisions allowing shortfalls to roll into the next five-year cycle.
  • Mexico argues rapid releases are constrained by prolonged drought and the limited capacity of the duct that conveys water to the Rio Grande, while denying unlawful noncompliance.
  • The tariff threat follows pressure from Texas producers, and the White House paired its stance with a $12 billion farm aid plan as broader bilateral meetings continue this week.