MEXICO CITY (Reuters) -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.

Mexico currently supplies around 70% of the U.S. tomato market, up from 30% two decades ago, according to the Florida Tomato Exchange.

While Mexico was spared from Trump's so-called "Liberation Day" tariff rollout on April 2, the 30% rate for the E.U. is 10 percentage points higher than what the president said he would apply to America's largest trading partner in April but lower than his mid-May threat of 50%.

Still, in a letter addressed to Carney last week, Trump advised that Canadian goods imported into the U.S. could face a blanket 35 percent tariff starting next month. A White House official, granted anonymity to discuss the negotiations, told POLITICO the administration plans to impose the tariff only on goods that do not comply with the USMCA.

The U.S. Department of Commerce on Monday imposed an immediate 17.09% tariff on tomatoes imported into this country from Mexico. Most of the tomatoes sold in Arizona come from Mexico.

On August 1, a significant shift in international trade is expected as President Donald Trump enacts a 30% tariff on imports from the European Union and Mexico, two of the U.S.'s largest trading partners.

Betting on Mexico’s currency has paid off for investors even amid Donald Trump’s trade war. The peso is up more than 11% this year, beating all regional peers, even as it dipped Monday following the latest tariff news — a threat of a 30% levy announced over the weekend.

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.