Chipotle downplays looming Trump tariffs, says only half of its avocados are from Mexico
Noting that just roughly half of its avocados come from Mexico, Chipotle Mexican Grills stated on Tuesday that it does not anticipate significant cost increases if tariffs on essential imported products take effect next month.
President Donald Trump postponed his intentions to impose 25% tariffs on imports from Canada and Mexico one day earlier. Restaurants would undoubtedly attempt to pass on the higher cost to their patrons if imports like avocados and meat were made more expensive after the one-month embargo.
However, Chipotle management dismissed the concerns about tariffs during Tuesday's earnings conference call. Chief Financial Officer Adam Rymer estimates that Chipotle's cost of sales will increase by around 60 basis points, or 0.6 percentage points, if tariffs targeting China, Can...