The US and Mexico agree on water treaty obligations, with Mexico to release 202,000 acre-feet, avoiding a threatened 5% tariff on Mexican goods.
NEW YORK: The United States and Mexico have reached an agreement on water-sharing obligations, averting new tariffs threatened by President Donald Trump.
The deal follows Trump’s accusation that Mexico violated a 1944 treaty and owed 800,000 acre-feet of water to the US.
He had demanded a quarter of that amount be released by December 31 or face a new 5% tariff.
“The United States and Mexico reached an understanding to meet the current water obligations of American farmers and ranchers,” the US Department of Agriculture said.
The agreement covers both the current water cycle and a deficit from the previous cycle, with a final plan due by the end of January.
Mexico will now release 202,000 acre-feet of water starting next week.
US Agriculture Secretary Brooke Rollins stated Mexico “has delivered more water in the last year than in the previous four years combined,” but still fell short.
“Farmers across South Texas have been reeling from the uncertainty caused by the lack of water,” Rollins added.
She echoed Trump’s threat, warning the US “reserves the right and will impose five percent tariffs on Mexican products” if commitments are violated.
Mexican President Claudia Sheinbaum had earlier expressed confidence in reaching a solution.
She cautioned meeting the December 31 deadline was physically impossible due to pumping equipment limitations.
“We have the best will to deliver the amount of water that is owed,” Sheinbaum said on Tuesday.
Mexico acknowledged being behind in water deliveries over the past five years, citing droughts in 2022 and 2023.
Trump previously threatened Mexico with economic repercussions over the dispute in April, prompting immediate water releases.
Mexican goods currently face a 25% tariff unless covered by the United States-Mexico-Canada Agreement (USMCA).
