Chipotle is the latest company to sound the alarm about President Donald Trump's plans to increase tariffs on items imported from Mexico.
The restaurant chain known for its bulky burritos said Monday that its 2019 costs will rise by an estimated $15 million if tariffs go up, NBC News reported.
Chipotle said it's trying to diversify its produce sourcing, particularly on avocados, in hopes of lessening the impact. Still, a price hike is likely.
“If the tariffs become permanent, we would look to offset these costs through other margin improvement efforts already underway,” Chipotle chief financial officer Jack Hartung said in a written statement obtained by NBC News. “We could also consider passing on these costs through a modest price increase, such as about a nickel on a burrito, which would cover the increased cost without impacting our strong value proposition.”
In addition to avocados, tomato prices are also expected to spike.