The U.S. and Mexico agreed to end a dispute over water at the border with Texas, days after President Donald Trump vowed to impose additional tariffs.

Both governments agreed that Mexico will deliver an additional 202,000 acre-feet of water beginning the week of December 15 and finalize a broader distribution plan by the end of January, the U.S. Department of Agriculture said in a statement on December 12.

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 December 13. The treaty requires Mexico to deliver 1.75 million acre-feet of water over five years to the U.S. from the Rio Grande River, while the U.S. 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 December 31. Communities along the U.S.-Mexico border in Texas have been affected by water shortages, with the Trump administration pledging a $12 billion lifeline for farmers impacted by U.S. tariffs.

Talks between both administrations continued during the week.

The U.S. 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 the statement December 12, U.S. 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.