Trump threatens Mexico with extra 5% tariff over water dispute

US President Donald Trump has threatened Mexico with an additional 5% tariff on imports over a dispute about water allocations along the shared border.

Trump said in a post on his Truth Social platform on Monday that Mexico was failing to provide the United States with sufficient water, jeopardizing livestock in the US state of Texas. The warning follows calls from Texas lawmakers to put pressure on the southern neighbour.

Under a 1944 treaty, Mexico is required to deliver water from the eastern Rio Grande basin to the US, receiving water in return from the western Colorado River, allowing both countries to share scarce water resources along the border. Disputes over allocations have been common, especially during periods of drought.

Trump now said that Mexico had failed to meet its obligations over the past five years and now owes nearly 1 billion cubic metres of water. He demanded that roughly a quarter of that amount be released by December 31, with the remainder to follow shortly afterwards.

"As of now, Mexico is not responding, and it is very unfair to our U.S. Farmers who deserve this much needed water. That is why I have authorized documentation to impose a 5% Tariff on Mexico if this water isn't released, IMMEDIATELY," Trump wrote.

The treaty was signed at a time when water was less scarce than today. Water from Mexico is used, for instance, to irrigate citrus crops in Texas, while some Mexican border states rely on water from the US portion of the Colorado River.