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.

President Trump is threatening Mexico and the European Union, two of the largest U.S. trading partners, with 30% tariffs starting in August if they don't reach a trade deal with the U.S. CBS News MoneyWatch correspondent Kelly O'Grady breaks down what this means for U.

Guajillo's on Padre Island struggles with smaller, more expensive tomato shipments from Mexico as the 17% tariff is implemented. More import tariffs are set to take effect August 1.

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

In the wake of new tariffs, the San Diego Regional Chamber of Commerce announced Monday that its senior leadership met with U.S. Ambassador to Mexico Ronald Johnson and emphasized the importance of a stable trade relationship between Mexico and the United States.

The U.S. government said Monday it is placing a 17% duty on most fresh Mexican tomatoes, after negotiations over alleged unfair trade practices ended without an agreement to avert the tariff.

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

"It’s all going to be the same for everyone," the president told reporters of the U.S. duty those countries will face.