← All storiesPoliticsDeveloping story Trump Threatens New 5% Tariff on Mexican Goods in Water Fight
President Donald Trump has threatened to impose a new 5% tariff on Mexican imports if the country does not release water that the U.S. claims must be allowed to flow under a treaty. This escalates the ongoing dispute between the two major trading partners.
The Trump administration argues that Mexico is withholding water that should be flowing to the U.S. under a 1944 treaty. However, Mexico denies any wrongdoing and has defended its water management practices.
This latest tariff threat comes as the two countries grapple with the economic fallout of the COVID-19 pandemic. The potential imposition of additional tariffs could further strain the already delicate trade relationship between the United States and Mexico.
The situation highlights the ongoing tensions between the two nations and the Trump administration's willingness to use economic leverage to address perceived imbalances, even when dealing with a close neighbor and ally.
Dec 21, 2025
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