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Threat of Additional 5 Percentage Points on Mexico Tariffs Fades
December 15, 2025 |White House

The Agriculture Department announced on Dec. 12 that Mexico had agreed to release water from the Rio Grande to Texas farmers. This irritant had caused President Donald Trump to threaten Dec. 8 to hike International Emergency Economic Powers Act tariffs on Mexico from 25% to 30% (see 2512090013). Those tariffs apply to goods that don't qualify under USMCA, and are not subject to Section 232 tariffs.

Topics:USMCA