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.

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.

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,

The Prime Minister’s comments mark the first time he has acknowledged that a pact would likely leave some of Trump’s levies in place