Both governments agreed that Mexico will deliver an additional 202,000 acre-feet of water beginning the week of Dec. 15 and finalize a broader distribution plan by the end of January, the US Department of Agriculture said in a statement on Friday.

The agreement seeks to “strengthen water management in the Rio Grande basin” within the framework of the 1944 Water Treaty, Mexico’s Foreign Ministry said in a separate statement on Saturday. The treaty requires Mexico to deliver 1.75 million acre-feet of water over five years to the US from the Rio Grande River, while the US is required to deliver 1.5 million acre-feet of water to Mexico from the Colorado River.

The deal eases rising tension between the countries after Trump threatened to slap additional 5% tariffs on Mexican imports and set a deadline for water deliveries starting Dec. 31. Communities along the US-Mexico border in Texas have been affected by water shortages, with the Trump administration pledging a $12 billion lifeline for farmers impacted by US tariffs.

Talks between both administrations continued during the week.

The US administration says that Mexico is 865,000 acre-feet short of water delivery requirements and has accused Mexico of ongoing delivery shortfalls that have caused water shortages for farmers and ranchers in the Rio Grande Valley. Mexican President Claudia Sheinbaum’s government has insisted it has not violated the treaty, saying it has continued to make water deliveries despite a serious drought in the region.

In Friday’s statement, US Agriculture Secretary Brooke Rollins called the agreement “a step in the right direction” but warned that the Trump administration may follow through with additional tariffs on Mexican imports if the country continues to violate the water treaty.