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US President Donald Trump threatens to impose 5% additional tariffs on Mexico, accusing country of violating 1944 water-sharing agreement.

Trump announces on Truth Social he will impose tariff if Mexico does not release water immediately, citing severe damage to Texas crops and livestock.

Trump says Mexico owes US 800,000 acre-feet under agreement, demands release of 200,000 acre-feet by 31 Dec, remaining amount shortly after.

Step coincides with Trump announcement of $12 billion aid package for US agriculture sector affected by his trade policies and previous tariffs.

Trump previously threatened Mexico in April over water dispute, prompting immediate release of water and compliance with 1944 agreement.

Mexican goods face 25% tariff if not covered by US-Mexico-Canada Agreement (USMCA).

AFP