US President Threatens 5% Tariff on Mexico Over Water Dispute
In a dramatic escalation of tensions with its southern neighbor, US President Donald Trump has threatened to impose an additional 5% tariff on Mexico if it fails to meet its obligations under a decades-old treaty related to water sharing.
The dispute centers around the Rio Grande, which forms part of the border between the two countries. Under the 1944 treaty, Mexico is required to supply 1.75 million acre-feet of water to the US every five years, while the US must allocate 1.5 million acre-feet annually from the Colorado River to Mexico.
However, Trump claims that Mexico has failed to meet its obligations over the past five years, owing the US an estimated 800,000 acre-feet of water. He demands that Mexico release 200,000 acre-feet by December 31 and more "soon after", threatening to impose a 5% tariff on Mexican goods if his demands are not met.
The lack of water has already had devastating consequences for Texas farmers, with crop losses and livestock shortages reported in recent months. Trump warned that this is "very unfair" to US farmers who are struggling to access the water they need.
Mexico's economy ministry has so far refused to comment on the matter. The country's own water resources have been severely impacted by drought conditions, overconsumption, and mismanagement, according to a recent study by the World Wildlife Fund. The study found that 52% of the water consumed from the Rio Grande is unsustainable.
This dispute highlights the ongoing tensions between the US and Mexico on issues related to trade and natural resources. Last year, US lawmakers urged Congress to withhold funding from Mexico until it met its water delivery obligations.
In a broader context, Trump's economic assistance package for farmers impacted by trade wars has been unveiled, with $12 billion in aid expected to help farmers recover from the losses caused by tariffs on Mexican goods. However, the dispute over water remains a pressing issue between the two countries.
In a dramatic escalation of tensions with its southern neighbor, US President Donald Trump has threatened to impose an additional 5% tariff on Mexico if it fails to meet its obligations under a decades-old treaty related to water sharing.
The dispute centers around the Rio Grande, which forms part of the border between the two countries. Under the 1944 treaty, Mexico is required to supply 1.75 million acre-feet of water to the US every five years, while the US must allocate 1.5 million acre-feet annually from the Colorado River to Mexico.
However, Trump claims that Mexico has failed to meet its obligations over the past five years, owing the US an estimated 800,000 acre-feet of water. He demands that Mexico release 200,000 acre-feet by December 31 and more "soon after", threatening to impose a 5% tariff on Mexican goods if his demands are not met.
The lack of water has already had devastating consequences for Texas farmers, with crop losses and livestock shortages reported in recent months. Trump warned that this is "very unfair" to US farmers who are struggling to access the water they need.
Mexico's economy ministry has so far refused to comment on the matter. The country's own water resources have been severely impacted by drought conditions, overconsumption, and mismanagement, according to a recent study by the World Wildlife Fund. The study found that 52% of the water consumed from the Rio Grande is unsustainable.
This dispute highlights the ongoing tensions between the US and Mexico on issues related to trade and natural resources. Last year, US lawmakers urged Congress to withhold funding from Mexico until it met its water delivery obligations.
In a broader context, Trump's economic assistance package for farmers impacted by trade wars has been unveiled, with $12 billion in aid expected to help farmers recover from the losses caused by tariffs on Mexican goods. However, the dispute over water remains a pressing issue between the two countries.