‘American farmers first’: US says Mexico agrees to repay the water deficit after Trump tariff threat

The United States and Mexico reached an agreement on sharing water on Friday (Dec 13). This comes after US President Donald Trump earlier this week threatened his neighbouring nation with additional tariffs, accusing it of violating its “comprehensive water treaty”. In a statement, the US Department of Agriculture said that the US and Mexico reached an understanding regarding the water issue as part of the 1944 Water Treaty.

“The United States and Mexico reached an understanding to meet the current water obligations of American farmers and ranchers and for Mexico to repay the water deficit in Texas as part of the 1944 Water Treaty. This agreement extends to the current cycle and the previous cycle’s water deficit,” the department said in a statement.

“President Trump continues to put American farmers first and is finally holding our international partners accountable to their obligations and commitments. Once again, America is being treated fairly,” US Secretary of Agriculture Brooke L. Rollins said in a statement. “Farmers across South Texas have been reeling from the uncertainty caused by the lack of water. Now they can expect the resources promised to them, thanks to President Trump’s leadership. I thank Mexico for their willingness to abide by the treaty and return to good standing with their past obligations.”

She further added, “Mexico has delivered more water in the last year than in the previous four years combined. Although this is a step in the right direction, President Trump has been very clear: if Mexico continues to violate its commitments, the United States reserves the right and will impose 5% tariffs on Mexican products.”

Trump alleged that the violation was “hurting our beautiful Texas crops and livestock”. Giving a deadline of December 31, Trump warned his neighbouring nation of imposing additional tariffs if 200,000 acre-feet of water is not released by them. He added that Mexico has an “obligation” to fix the issue.

Under the ‘Treaty on the utilization of waters of the Colorado and Tijuana Rivers and of the Rio Grande’, which was signed in 1944 betwee the two neighbours, Mexico is required to send 1.75 million acre-feet of water to the US from the Rio Grande through a network of interconnected dams and reservoirs every five years, which is used to support agricultural activities in Texas and other US bordering states.

“With today’s understanding, Mexico has agreed to release 202,000-acre feet of water to the United States with deliveries expected to begin the week of December 15, 2025. Timely repayment of the outstanding deficit from the previous water cycle is understood by Mexico. The United States and Mexico are in negotiations to finalize a plan by the end of January 2026,” the Department of Agriculture stated.