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.

New U.S. tariff imposes 20.91% on Mexican tomato imports, potentially raising prices in stores and restaurants.

The U.S. just ended a decades-old tomato trade agreement with Mexico, and while prices could soon spike at grocery stores and restaurants across the country, one Stanislaus County farmer says not so fast.

With new tariffs on tomatoes from Mexico falling during Maryland’s tomato season, farmers are hopeful that more people will make the switch to local produce.

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

If a 30 percent tariff on Mexico goes into affect on August 1, a wide variety of foods will be more expensive, experts warn.

The 1996 agreement is set to expire Monday, which could raise the price of Mexican tomatoes and threaten thousands of Texas jobs.