From Washington Examiner: President Donald Trump touched on two major trade matters back-to-back on Monday, approving the sale of Nvidia chips to China and threatening Mexico with a 5% tariff over water rights.
Trump’s first announcement, made on Truth Social, concerned the sale of Nvidia’s H200 products to China and other countries, which he ultimately approved. He said he informed Chinese President Xi Jinping of the decision personally “under conditions that allow for continued strong National Security” and that Xi responded “positively!”
Trump’s next announcement concerned the matter of the United States’s water treaty with Mexico, which has earned his ire.
“I have informed President Xi, of China, that the United States will allow NVIDIA to ship its H200 products to approved customers in China, and other Countries, under conditions that allow for continued strong National Security,” Trump wrote. “President Xi responded positively!”
“$25% will be paid to the United States of America,” he continued. “This policy will support American Jobs, strengthen U.S. Manufacturing, and benefit American Taxpayers. The Biden Administration forced our Great Companies to spend BILLIONS OF DOLLARS building ‘degraded’ products that nobody wanted, a terrible idea that slowed Innovation, and hurt the American Worker. That Era is OVER! We will protect National Security, create American Jobs, and keep America’s lead in AI.
“NVIDIA’s U.S. Customers are already moving forward with their incredible, highly advanced Blackwell chips, and soon, Rubin, neither of which are part of this deal. My Administration will always put America FIRST. The Department of Commerce is finalizing the details, and the same approach will apply to AMD, Intel, and other GREAT American Companies. MAKE AMERICA GREAT AGAIN!”
The Examiner notes that the deal comes after the release of the Trump administration’s “bombshell new national security strategy, which departs significantly from that of his first administration, focusing on containing China in favor of a spheres-of-influence-type approach.”
Analysts interpreted the shift as a move away from previous aggression towards Beijing.
In his second post on Mexico, Trump wrote, “Mexico continues to violate our comprehensive Water Treaty, and this violation is seriously hurting our BEAUTIFUL TEXAS CROPS AND LIVESTOCK.”
“Mexico still owes the U.S over 800,000 acre-feet of water for failing to comply with our Treaty over the past five years,” Trump explained. “The U.S needs Mexico to release 200,000 acre-feet of water before December 31st, and the rest must come soon after. As of now, Mexico is not responding, and it is very unfair to our U.S. Farmers who deserve this much needed water. That is why I have authorized documentation to impose a 5% Tariff on Mexico if this water isn’t released, IMMEDIATELY.
“The longer Mexico takes to release the water, the more our Farmers are hurt. Mexico has an obligation to FIX THIS NOW. Thank you for your attention to this matter!”
Earlier this year, tensions arose between the U.S. and Mexico over Mexico’s delayed fulfillment of obligations under the 1944 Water Treaty, prompting threats of tariffs from former President Trump.
The Examiner explains: “Under the treaty, Mexico is obligated to deliver 1.75 million acre-feet of water from the Rio Grande to the U.S. every five years in exchange for the U.S. sending 1.5 million acre-feet from the Colorado River to Mexico annually.”
The issue seemed to have been resolved in April through a deal ensuring Mexico’s commitment to transfer water for the remainder of the current five-year water cycle.
Agricultural Secretary Brooke Rollins had hailed this agreement as a victory for American agriculture. Mexican President Claudia Sheinbaum had acknowledged Mexico’s delays but expressed optimism, affirming efforts to comply with the treaty.
Read more at Washington Examiner
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