Trump threatens new 5% tariff on Mexico

US President Donald Trump on Monday warned that his administration is prepared to impose an additional 5% tariff on Mexico, accusing the country of breaching a long-standing water-sharing agreement with the United States.

In a message posted on his Truth Social platform, Trump said he had approved the necessary paperwork to enact the tariff should Mexico fail to release water “immediately,” arguing that farmers and livestock producers in Texas were already suffering severe impacts.

According to the president, Mexico has fallen short of its obligations under the 1944 water treaty, which requires both nations to exchange water from the Colorado River and the Rio Grande, the river that partially serves as the U.S.-Mexico border.

Trump claimed Mexico owes the United States 800,000 acre-feet of water under the accord and demanded that at least 200,000 acre-feet be released before December 31, with the remaining balance to follow shortly thereafter.

“The longer Mexico delays, the more damage is done to our farmers,” he wrote.

The threat comes on the same day Trump unveiled a $12-billion relief package for America’s agricultural sector, which continues to grapple with disruptions linked to his broader trade and tariff policies.

This is not Trump’s first warning to Mexico over the issue.

In April, he issued a similar ultimatum, after which Mexico released water and pledged continued compliance with the treaty.