Trump threatens new 5% tariff on Mexican goods in water fight

Josh Wingrove, Bloomberg News on Dec 8, 2025

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President Donald Trump threatened to impose an additional 5% tariff on imports from Mexico if the country did not release water that his administration says must be allowed to flow under a treaty, escalating a fight with a major trading partner.

“I have authorized documentation to impose a 5% Tariff on Mexico if this water isn’t released, IMMEDIATELY,” Trump posted Monday on social media. “The longer Mexico takes to release the water, the more our Farmers are hurt. Mexico has an obligation to FIX THIS NOW.”

“The U.S. needs Mexico to release 200,000 acre-feet of water before December 31st, and the rest must come soon after,” he added, setting a deadline for the country to comply.

At issue are tensions over water supplies for farmers in South Texas as the Trump administration seeks to ramp up pressure on Mexican authorities over their obligations under a 1944 treaty. The U.S. State Department said last month that officials from the two countries had met to discuss steps Mexico could take to “reduce shortfalls in water deliveries and ensure compliance.”

The administration says that Mexico is 865,000 acre-feet short of delivery requirements.

Trump on Monday said the dispute was harming communities in Texas along the U.S.-Mexico border, hours after his administration announced a $12 billion lifeline to boost farmers caught in the crossfire of the president’s tariff regime.

“As of now, Mexico is not responding, and it is very unfair to our U.S. Farmers who deserve this much needed water,” Trump said.

The U.S. president has already imposed levies on Mexican imports to the U.S. not covered by the USMCA trade pact negotiated in his first term, tariffs he said were intended to pressure the country to crack down on fentanyl trafficking.

Mexican officials have sought an agreement with Trump to lower those import taxes, with Mexican President Claudia Sheinbaum meeting him last week at the World Cup draw in Washington.