The U.S. is pulling out of a three-decade-old tomato price agreement with Mexico. The move is to make way for a nearly 21% tariff on most Mexican tomato imports.

Tomato prices in the US could rise due to the termination of the Tomato Suspension Agreement, which was signed for the first time in 1996 and updated in 2019.

American consumers could see a price hike and some restaurant owners may face shutting down, as a nearly three-decade-old US-Mexico trade agreement may give way to 20.9% tariffs on most Mexican tomato imports on July 14.