President Donald Trump’s plan to impose tariffs on America’s largest trading partners is sending ripples through the U.S. economy, as businesses and consumers alike prepare to pay.
Yet for Chipotle (NYSE:CMG) customers, it appears, for now, that it will be smoother sailing at the check-out register.
Chipotle CEO Scott Boatwright told the media that, for now, the burrito purveyor intends to keep costs constant for consumers even as some of its cost of goods move higher.
“It is our intent as we sit here today to absorb those costs,” he said, though he cautioned pricing changes could eventually come if elevated costs become a “significant headwind.”
For the most part, Chipotle is insulated from many of the costs implied by the types of tariffs Trump has proposed, which, if followed through with next week, would set 25% duties on Canada and Mexico and an additional 10% on ones from China on top of a 10% levy imposed last month.
Boatwright has previously indicated Chipotle now gets about 50% of its avocados from Mexico, with the rest coming from Colombia, Peru and the Dominican Republic. All told, Boatwright has estimated cost of goods would increase 0.6%, or 60 basis points, on a rolling basis from the planned tariffs.
CMG shares increased $1.02, or 1.9%, to $54.99.
