Of the myriad political changes happening in the U.S. right now, fast food fallout may not be first and foremost on your mind (you might, understandably, be more worried about your basic civil rights). But now you can add something relatively frivolous to your list of worries: The prices at everyone’s go-to Mexican fast-food chain, Chipotle, could skyrocket soon as a result of Trump’s imminent tax plan.
The plan, which Trump discussed last week, will impose a 20 percent border tax on Mexican imports to help pay for the infamous wall (which, fun fact, will cost $15 billion to build). Chipotle reportedly sources the vast majority of its avocados — 93 percent — and tomatoes — 71 percent — from Mexico. You don’t have to be a math genius to figure out that Chipotle, along with other restaurants, grocers and consumers, will take a major hit.
Seeing as Mexico is the U.S.’s largest source of agricultural imports, the tax will extend to plenty of other produce, including bell peppers and onions. Mexican tequilas and beers like Corona will be impacted. And that’s just a small sample of the food-related effects of the border tax — not even getting into its ramifications for the national deficit, dollar strength and overall American economy.
But back to Chipotes, as I fondly call it. The company can either eat the cost of pricier avocados, which could impact its earnings by an estimated 17 cents a share, or it can jack up prices for its customers. What would you do? Everyone, get your cheap Mexican fixes while you can.
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