Why Tariffs on Mexico May Hurt Chipotle Less Than You Think | Global News Avenue

Chipotle Mexican Grill (CMG) Avocado sauce is being eliminated, which relies on countries that inspired its menu, less than you think.

“Today, we are from Colombia, Peru and the Dominican Republic. Today, we only have about 50% of the avocado supply (IS) today from Mexico.” Chipotle CEO Scott Boatwright was on Tuesday Company revenue phone numberits transcript is provided by Alphaense. “Our supply chain team has done a great job of diversifying suppliers over the past few years.”

This move may be helpful Chipotle Mexico accounts for 89% of all fresh avocados and is shipped to the United States in 2023, under climate tariffs imported by Mexico. USDA. Almost all avocados imported from elsewhere in the country are from Peru, the Dominican Republic or Colombia.

The U.S. consumption of avocado has surged since the early 2000s, and so has the country’s dependence on international producers. By 2005, more than half of the fresh avocados consumed in the United States were grown domestically. According to the Ministry of Agriculture, in 2023, the lowest recorded.

Trump’s tariffs will increase the cost of chips slightly

Trump administration increases by 10% Tariffs on Chinese imports This week, a 25% import tax on items in Mexico and Canada may be imposed in early March.

Chief Financial Officer Adam Rymer said Tuesday that Chipotle spent its total cost on ingredients in China, Mexico and Canada. this avocadoChipotle-derived tomatoes, limes and chili peppers from Mexico account for about 2% of their Sales costwhile China and Canada export volumes account for 0.5% of input costs. CEO Boatwright said tariffs could increase Chipotle’s expenses by about 0.6% this year if fully formulated.

Researchers warn that American consumers may feel the pain of tariffs. Yale University economists estimate that the plan can Increase the cost of living Loss of US households at 0.7%. Average $1,250 per year.