Some things might change as Trump tries to get America back on track.
Chipotle’s CEO, Scott Boatwright, recently addressed the potential impact of President Donald Trump’s tariffs on imports from neighboring countries, assuring that the company would absorb the costs as long as they don’t become a significant burden. While Boatwright emphasized that the company’s strategy for now is to handle the cost increases, he acknowledged that if tariffs lead to “substantial challenges,” the company might have to reconsider its position.
During a recent earnings call, Boatwright revealed that Chipotle sources a modest 2% of its ingredients from Mexico, such as avocados, tomatoes, limes, and peppers. Additionally, less than 0.5% of its ingredients come from Canada and China. If tariffs on these goods go into effect, it could increase the company’s cost of sales by roughly 60 basis points, Boatwright explained.
President Trump has indicated the U.S. will proceed with plans to implement a 25% tariff on imports from Mexico and Canada, along with a 10% tariff on Chinese imports. Earlier this year, a 10% tariff was already placed on Chinese imports, marking the escalation of trade tensions. These moves are part of the administration’s broader strategy to hold trading partners accountable and push for better terms that align with American interests.
Although President Trump temporarily suspended tariffs on Mexico and Canada in January after securing border-related agreements, he has made it clear that these tariffs are crucial to ensuring that our neighbors fulfill their promises to combat illegal immigration and prevent the flow of harmful drugs like fentanyl into the U.S.
Critics argue that tariffs could lead to higher prices for consumers, as companies pass on the increased costs to shoppers. Retailers across the country are already voicing concerns about the economic repercussions, warning that higher costs could force them to reduce their inventory or raise prices, further burdening American families. Despite these concerns, President Trump remains committed to holding foreign nations accountable for their trade practices and border security responsibilities.
Chipotle”s food is the 2nd worst Mexican food I have ever ate, next to Taco bell. So who cares.
Really? All of the items mentioned are available right here in the U.S. Why are they NOT being purchased here, rather than in Mexico, Canada and other places. Keep up the pressure, President Trump, and thank you for looking out for us, the American People, unlike the last, so called president, we had. Turns out he and his cronies were nothing more than just a bunch of damn crooks, padding their own pockets. Why are they not in jail. Anyone of the rest of us would have been.