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Asolica > Blog > Business > U.S., Mexico strike deal to settle Rio Grande water dispute | Fortune
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U.S., Mexico strike deal to settle Rio Grande water dispute | Fortune

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Last updated: December 14, 2025 12:44 am
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1 month ago
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U.S., Mexico strike deal to settle Rio Grande water dispute | Fortune
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The US and Mexico agreed to finish a dispute over water on the border with Texas, days after President Donald Trump vowed to impose extra tariffs.

Each governments agreed that Mexico will ship an extra 202,000 acre-feet of water starting the week of Dec. 15 and finalize a broader distribution plan by the top of January, the US Division of Agriculture mentioned in a assertion on Friday.

The settlement seeks to “strengthen water management in the Rio Grande basin” inside the framework of the 1944 Water Treaty, Mexico’s International Ministry mentioned in a separate assertion on Saturday. The treaty requires Mexico to ship 1.75 million acre-feet of water over 5 years to the US from the Rio Grande River, whereas the US is required to ship 1.5 million acre-feet of water to Mexico from the Colorado River.

The deal eases rising rigidity between the nations after Trump threatened to slap extra 5% tariffs on Mexican imports and set a deadline for water deliveries beginning Dec. 31. Communities alongside the US-Mexico border in Texas have been affected by water shortages, with the Trump administration pledging a $12 billion lifeline for farmers impacted by US tariffs.

Talks between each administrations continued in the course of the week.

The US administration says that Mexico is 865,000 acre-feet in need of water supply necessities and has accused Mexico of ongoing supply shortfalls which have induced water shortages for farmers and ranchers within the Rio Grande Valley. Mexican President Claudia Sheinbaum’s authorities has insisted it has not violated the treaty, saying it has continued to make water deliveries regardless of a severe drought within the area.

In Friday’s assertion, US Agriculture Secretary Brooke Rollins referred to as the settlement “a step in the right direction” however warned that the Trump administration could comply with by means of with extra tariffs on Mexican imports if the nation continues to violate the water treaty.

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