Life

Trump's Mexico Tariffs Could Hit Chipotle (and Your Wallet) the Hardest

One analyst predicts Trump's trade war with Mexio could hit Chipotle the hardest.

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With Trump signing executive orders to build billion-dollar walls between and Mexico, most taxpayers aren't happy they will be the ones footing the bill for this wall. Trust and believe, though, that you might not just feel it when you're getting hit with higher taxes; you might end up having to pony up more when you cop your eats at Chipotle.

Analyst Mark Kalinowski says that the 20 percent tariff on goods coming from Mexico, which has the potential of making goods coming into America from Mexico more expensive, will hit Mexican restaurant chains like Chipotle the hardest. His reasoning? It all boils down to the estimated 70 million pounds of avocados that Chipotle gets from Mexico every year.

"Our belief is that the company generally obtains about 70-90 percent of its avocados from Mexico, all of its limes, the majority of its jalapenos, less than half of its tomatoes, and small amounts of other items (e.g., cilantro)," he says. "In other words, should a 20 percent tariff be enacted for goods imported from Mexico, Chipotle likely would bear the biggest brunt of this potential impact on food costs compared to the other companies we cover."

You know what that means, right? Higher tariffs on the companies means higher prices on menu items for customers. That's not saying that those delicious burritos you're eating for lunch will be $20 a pop now, but trust if this all goes down, you will be forced to ante up at the cash register.

Should you be shook? At the end of the day, it's just delicious Mexican food. But it's just another sign of what's going down with the Trump administration in a very short period of time. Either cop everything you can right now and find a way to freeze dry that sh*t or be cool with eating Chipotle on fewer occasions.

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