Chipotle says Mexico tariffs may increase price of your burrito

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Restaurant chain Chipotle Mexican Grill says the Trump administration’s threatened tariffs on Mexican merchandise may add $15 million to its prices in 2019.

Chipotle Chief Monetary Officer Jack Hartung mentioned Monday the tariffs would cut back revenue margins for the quick meals firm, which sells burritos and tacos and claims to make use of 450,000 avocados per day.

Underneath the Trump administration’s plan, tariffs would begin at 5% on June 10 and rise to 25% in October. President Donald Trump says he’ll impose the tariffs as a option to drive the Mexican authorities to dam principally Central American migrants from crossing into the U.S.

Hartung says if the tariffs turn out to be everlasting Chipotle would offset them by cost-cutting efforts or modest value will increase, reminiscent of a nickel per burrito.

Chipotle makes use of avocados and different produce grown in Mexico. The chain operates 2,500 eating places within the U.S., Canada and Europe.

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