If Donald Trump’s proposed 20% tax on goods coming from Mexico passes, we’ll be paying A LOT more for Chipotle’s guac.
The tax, which would potentially be used to pay for the proposed US-Mexico border, wouldn’t just affect goods we buy in store, it would affect any restaurant and chain serving up Mexican food.
Taking the biggest hit? Our beloved Chipotle.
Seriously, Chipotle just cannot catch a break. They’ve been trying to recover business and profits from the E.Coli outbreak and now when it seems like they’re finally finding their footing again, they’re being threatened with a HUGE price increase for the only food they serve up.
I think I speak for more than just myself when I say that I’ll be so pissed if Trump’s ideas force my favorite fast-food joint to close up shop.
Restaurant industry analyst Mark Kalinowksi told Business Insider that Chipotle would be more affected by this tax than the mom-and-pop Mexican restaurant because of the quantities of good they import from Mexico.
“Our belief is that the company generally obtains about 70 to 90 percent of its avocados from Mexico, all of its limes, the majority of its jalapeños, less than half of its tomatoes, and small amounts of other items (e.g., cilantro),” Kalinowski wrote.
To offset the cost of goods, Chipotle would have to hike up prices for customers and that might just turn people away from eating at they establishment.
Let’s hope White House Press Secretary Sean Spicer wasn’t serving up “alternative facts” when he said the administration might not pursue the tariff and “go in another direction.”