Chipotle CEO Scott Boatwright said the company will absorb Trump's tariffs for now. But if they become a major burden, that could change.
"It is our intent as we sit here today to absorb those costs," Boatwright told "NBC Nightly News." If they become a "significant headwind," he added, adjustments might be needed.
Chipotle sources just 2% of its ingredients from Mexico. That includes avocados, tomatoes, limes, and peppers. Less than 0.5% comes from Canada and China.
If tariffs kick in, it could raise costs by about 60 basis points, Boatwright said during an earnings call.
Trump announced a 25% tariff on imports from Mexico and Canada. He also added a 10% tariff on Chinese imports. A previous 10% tariff on China was already in place.
In January, Trump paused tariffs on Mexico and Canada. Canada agreed to a $1.3-billion border plan and a fentanyl czar. Mexico pledged 10,000 border troops.
China isn’t backing down. After Trump's 10% tariff hike in February, China hit back. They launched an antitrust probe into Google and restricted rare earth exports.
The White House says tariffs are meant to hold these nations accountable. Critics argue they’ll just raise costs for American consumers. Some retailers fear price hikes and inventory cuts.