Mexican President Claudia Sheinbaum on Tuesday said Mexico will take action if an agreement with Washington regarding new tariffs is not reached by the August 1 deadline set by her U.S. counterpart Donald Trump.

The Trump Administration withdrew from a longstanding trade agreement with Mexico governing the import of tomatoes and will push forward with a new tariff of just over 17%, the Commerce Department announced Monday.

President Donald Trump in recent days slapped tariffs as high as 50% on dozens of countries, restoring the type of aggressive trade policy that sent stocks plummeting a few months ago. The new round of levies prompted little more than a shrug on Wall Street.

Donald Trump has imposed a 17 percent tariff on tomatoes imported from Mexico, leaving shoppers and business owners bracing for the price of the grocery staple to increase. The tariffs took effect on Monday after the U.

Wall Street is pointing lower before the opening bell with new tariffs announced for Europe and Mexico and as the unofficial start of earnings season get under way this week.

Businesses typically pass tariff costs onto consumers through higher prices. Sometimes, that process is less subtle.