US Threatens Mexico with 5% Tariff

US President Donald Trump has announced that a 5% tariff will be imposed on Mexico for violating the water supply agreement. The President made this statement on his Truth Social platform.

“At this time, Mexico is not responding to the United States' inquiries, and that is very unfair to American farmers who need that vital water. That is why I have prepared documents that will allow for the imposition of a 5% tariff on Mexico if that water is not provided immediately,” Trump wrote.

According to a report by The Washington Post on May 17, 2024, Mexico has repeatedly violated the agreement for decades, “resisting the provision of water supplies to the U.S.,” as it suffers from drought itself. The two countries signed an agreement in 1944, under which Mexico was obliged to send approximately 2.2 billion cubic meters of water from the Rio Grande basin to the U.S. every five years, while the U.S. would send 1.8 billion cubic meters of water from the Colorado River in the opposite direction.