Chipotle can pass the costs if the definitions become important “opposite winds”

CEO of Chipotle Scott Boatwright He said that the company will accommodate the planned definitions of President Donald Trump on neighboring countries to cause a major challenge.

“We are sitting here today to accommodate these costs.” However, if the costs become “important winds”, this may change.

The CEO said during a profit call earlier this month that the company is 2 % sources of its components of Mexico, which include avocado, tomatoes, lemon and pepper, and less than 0.5 % of its components of Canada and China.

The Mexico tariff, Canada, will be implemented due to the “unacceptable” drug flow, says Trump

If the definitions enter into force, “It will have a constant effect of about 60 basis points on the cost of our sales,” Buttrit told analysts during the call.

Trump indicated that the United States is moving forward with plans to impose a 25 % tariff on imports from Mexico and Canada with an additional tax by 10 % on Chinese imports on Tuesday. The United States has already carried out a 10 % tariff on Chinese imports earlier this year.

Trump initially suspended the tax on Mexican and Canadian imports in January for one month after Canada promised to implement a border plan of $ 1.3 billion and appoint the fentanel Caesar, while Mexican President Claudia Shinbom agreed to provide 10,000 soldiers on The boundaries between the United States and Mexico.

What are the definitions, how do they work and those who pay them?

Trump has already increased tariffs on China’s goods by 10 % on board. These definitions entered on February 4, and The Chinese government announced the retaliatory definitions In some US energy exports and took other punitive measures, including Google’s anti -monopoly probe and restrictions on rare ground mineral exports.

Shortly after Trump’s re -election, the White House said it was working “to hold Mexico, Canada and China responsible for their promises to stop illegal immigration and stop the toxic fentanel and other drugs from flowing to our country.”

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The opponents argue that the cost of definitions will only be He moved to American consumers. Over the past few months, many retailers have raised concerns about the possibility of customs tariffs pumping the costs of their products or even forcing them to reduce inventory.