Mexico’s tomato export agreement was first made in 1996, whereby the two governments vowed to control it and resolve US allegations against Mexico concerning “unfair trade” practices. The agreement was updated six years ago to stop an investigation into dumping and settle tariff issues.

The Mexican delegation in Washington expressed disagreement with the tariff announcement and considered it “unfair treatment,” according to a government statement.

Mexico is aiming for a U.S. trade agreement before the Aug. 1 deadline, while the European Union said it is ready to retaliate against any tariffs.

The impact on effective tariff rates is expected to be moderate. BofA estimates these could rise to 4.2% for Canada and 6.9% for Mexico, up from 3.6% and 6.2%, respectively, due to the high share of USMCA-compliant goods in total trade flows.

Investors should ignore the daily back and forth on tariffs and focus instead on a handful of developments on the horizon.

The U.S. Commerce Department said on Monday it was withdrawing from a 2019 deal suspending an anti-dumping duty investigation on fresh tomatoes from Mexico, and that it will issue duties of 17.09% on most of those imports from the U.

President Trump has flagged that US tariffs on pharmaceutical imports are likely to kick in on Aug. 1, with duties on semiconductors also in line for implementation then too. “Probably at the end of the month,

European trade ministers pledged unity Monday after U.S. President Donald Trump announced 30% tariffs on the European Union.