By: Taylor Delandro
(NewsNation) — With the Trump administration’s 25% tariff on all Mexican imports set to take effect Tuesday, Chipotle has pledged to absorb potential cost increases.
Chipotle CEO Scott Boatwright stated in a Sunday interview on “NBC Nightly News” that the company plans to keep consumer prices stable despite higher costs for some goods.
“It is our intent as we sit here today to absorb those costs,” he said, adding that price changes may occur if costs become a “significant headwind.”
Boatwright previously noted that about 50% of Chipotle’s avocados come from Mexico, with the remainder sourced from Colombia, Peru and the Dominican Republic. He estimated that tariffs could increase the cost of goods by 0.6%.
Chipotle’s economic model allows it to absorb inflationary pressures without passing them on to consumers, Boatwright said. However, he acknowledged uncertainty about future tariffs under the new administration.
President Donald Trump threatened tariffs on America’s top trading partners in February before suspending them at the last minute after Mexico sent 10,000 National Guard troops to their shared border to crack down on drug trafficking and illegal immigration.
The 25% tariff on Mexico is set to go into effect Tuesday after a 30-day pause.
