Trade Trump threatens Mexico with punitive tariffs in water dispute

SDA

9.12.2025 - 02:13

An 80-year-old treaty between the USA and Mexico regulates how water from two large rivers in the border region is distributed. Now there is a dispute - and President Trump is threatening consequences. (archive image)
An 80-year-old treaty between the USA and Mexico regulates how water from two large rivers in the border region is distributed. Now there is a dispute - and President Trump is threatening consequences. (archive image)
Keystone

US President Donald Trump is threatening his neighbor Mexico with punitive tariffs of five percent in a dispute over the distribution of water reserves in the border region. He accused the Mexicans of not giving the United States enough water.

Keystone-SDA

This would endanger livestock farming in Texas, he wrote in a post on his online platform Truth Social. Members of Congress from the US state had previously called on the Republican to exert more pressure on the neighboring country to the south.

According to a treaty dating back to 1944, Mexico must hand over water from its Rio Grande catchment area in the eastern half of the shared border region to the USA. In return, the country receives water from the Rio Colorado further to the west. However, disputes repeatedly arise over the distribution issues - especially in times of acute drought.

Trump demands almost one billion cubic meters of water

Mexico has not complied with the treaty between the two countries over the past five years and owes the USA the equivalent of almost one billion cubic meters of water, Trump has now written. Just under a quarter of this amount must be released by December 31, with the rest to follow soon.

So far, Mexico has not responded and this is very unfair to US farmers who deserve this urgently needed water, Trump wrote. He has therefore made the necessary preparations and issued permits to impose a five percent tariff on Mexican imports to the USA "if this water is not released IMMEDIATELY".

Dispute flares up especially during dry periods

The water treaty was concluded at a time when this precious resource was not as scarce as it is today. The water from Mexico is needed for the cultivation of citrus fruits in Texas, for example. On the Mexican side, some states close to the border are dependent on the water that comes from the American section of the Colorado River.