President Donald Trump has threatened a new 5 percent tariff on Mexico as a long-simmering water dispute erupts amid severe drought across the U.S. Southwest. Accusing Mexico of violating the 1944 Water Treaty and under-delivering Rio Grande allocations by hundreds of thousands of acre-feet, Trump warned he will escalate pressure unless Mexico releases 200,000 acre-feet by year-end. Texas farmers report massive irrigation losses, crop failures and even mill closures as Washington links the dispute to a new $12 billion farm aid package.
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