Trump gives Mexico

Donald Trump’s trade tensions with Mexico have intensified following a shift from a previously agreed deal in February. During an April 2 White House announcement, Trump introduced his ‘Liberation Day’ economic plan, imposing new tariffs globally—including a 25% tariff on foreign-made cars and a 10% general tariff, excluding countries under the USMCA agreement. While Mexico initially avoided these tariffs through a border and drug trafficking deal with the U.S., Trump now threatens renewed tariffs and sanctions. The original agreement involved Mexico deploying 10,000 National Guard troops to the U.S. border and cooperating on trade and security, in exchange for a one-month tariff pause.

However, tensions have escalated due to Trump’s accusations that Mexico is violating a 1944 treaty by withholding 1.3 million acre-feet of water owed to Texas farmers from the Rio Grande. Trump stated that Mexico’s failure to meet this obligation is damaging agriculture in South Texas and vowed escalating measures unless compliance is met. Mexico, currently facing a three-year drought, claims it is fulfilling the treaty as much as conditions allow. President Claudia Sheinbaum submitted a proposal with short-term solutions and remains hopeful that a mutual agreement will be reached through diplomatic discussions.