Trump Gives us All Whiplash With Threat of New Tariffs—Now on Mexico
Mere hours after the markets were slightly buoyed by a White House announcement that Donald Trump's global tariff plan would see a 90-day pause, the president decided to reverse course and threaten more tariffs.
In a nighttime post to Truth Social Thursday, Trump warned that Mexico could be subject to a higher tariff rate as punishment for allegedly violating an 81-year-old water treaty.
'Mexico OWES Texas 1.3 million acre-feet of water under the 1944 Water Treaty, but Mexico is unfortunately violating their Treaty obligation,' Trump wrote. 'This is very unfair, and it is hurting South Texas Farmers very badly.'
'Last year, the only Sugar Mill in Texas CLOSED, because Mexico has been stealing the water from Texas Farmers. Ted Cruz has been leading the fight to get South Texas the water it is owed, but Sleepy Joe refused to lift a finger to help the Farmers,' he continued.
'THAT ENDS NOW!' the president wrote. 'I will make sure Mexico doesn't violate our Treaties, and doesn't hurt our Texas Farmers. Just last month, I halted water shipments to Tijuana until Mexico complies with the 1944 Water Treaty. My Agriculture Secretary, Brooke Rollins, is standing up for Texas Farmers, and we will keep escalating consequences, including TARIFFS and, maybe even SANCTIONS, until Mexico honors the Treaty, and GIVES TEXAS THE WATER THEY ARE OWED!'
Mexico President Claudia Sheinbaum didn't outright reject the claim that her country had violated the water deal, but instead cited a three-year drought induced by climate change as the reason for the decreased shipments, noting on X that 'to the extent water is available, Mexico has been complying.'
'I have instructed the Secretaries of Agriculture and Rural Development and Foreign Affairs, as well as the Secretary of Environment and Natural Resources, to immediately contact the U.S. Department of Agriculture and the Department of State,' Sheinbaum wrote. 'I am confident that, as with other issues, an agreement will be reached.'
Meanwhile, Trump's hit-or-miss approach to enacting tariffs has sent the U.S. markets into a tailspin in little more than a week, leaving some financial experts believing that the president had done irreparable damage to America's trade reputation and its economy. Banks and investment firms are still predicting a high possibility of a recession, even after Trump caved to mounting domestic pressure Wednesday and announced a 90-day pause to his sweeping tariff proposal for 200 countries.
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