If news of America’s trade “negotiations” with Mexico—which have grown so acrimonious as to require the scare quotes—haven’t commanded your attention, here’s an economic nugget that might wake you up: Chipotle is considering raising prices in response to proposed tariffs. Nation’s Restaurant News reports the announced tariffs on Mexican goods would cost Chipotle an estimated $15 million, potentially forcing prices to rise.
The price increases would, however, be small—about five cents per burrito, according to a statement released by Chipotle’s chief financial officer, Jack Hartung. The company buys many of its ingredients, including avocados, limes, jalapeños, tomatoes and bell peppers, from Mexico. And with the average Chipotle location mixing up 70 lbs. of guacamole a day, tariffs on those avocados and limes start to add up. Hartung reaffirmed Chipotle is not considering switching to premade guac or premashed avocados: “We believe that using whole, fresh ingredients and making guacamole by hand in our restaurants each day leads to better tasting guacamole that our customers deserve and expect from Chipotle.”
The price increases, and the tariffs, are all still in the “potential” category, as neither has yet been enacted. American and Mexican officials are scheduled to meet tomorrow to discuss trade, but President Trump told reporters during a press conference this morning he anticipates the tariffs will go into effect next week despite the meeting. If all this back-and-forth drones on in Peanuts-teacher voice somewhere off your radar, consider your avocado bill. Even with prices likely to rise, Mexican avocado farmers feel optimistic Americans will bear the increased costs. Farmer Enrique Bautista told the Associated Press: “I think the bigger risk is for U.S. consumers.”