Here’s What A 20% Border Tax On Mexican Goods Can Do To The Price Of Guacamole At Chipotle
Within a few days of Donald Trump becoming the President of the United States he announced that he wold be going through with the plan of building a wall along the Mexico- USA border. He also announced that he is considering a 20% border tax on Mexican goods which are imported into the USA. This has raised a number of concerns as many goods including computers, cars, trucks and food.
An Increase In Food Prices
Eater recently put together a list of foods which America primarily gets from Mexico. According to this list, 15% of all the sugar consumed in the US comes from Mexico, 71% of the tomatoes consumed in the US come for Mexico as well as 93% of the Hass Avocados.
Additionally, the US imports 79% of the tequila Mexico produces and $1.3 billion worth of beer.
Trouble For Chipotle
Hass avocados and tomatoes are two main ingredients in Chipotle’s guacamole. The company uses around 97,000 pounds of avocados each day and 354.5 million pounds of avocados per year.
Should the tax go through, Chipotle will have to either increase the price of the guacamole (which is currently at ($2.30) or stop serving it altogether.
Indeed, in its annual report filed last year, Chipotle said if raw ingredients got more expensive, the company “may choose to temporarily suspend serving menu items, such as guacamole or one or more of our salsas, rather than paying the increased cost for the ingredients.”
However, the tax has not yet gone through; some hope remains for your guacamole and chips snack.