According to Chipotle's top executives, the Tex-Mex fast food chain has no plans to pass the tariffs on its customers.
Scott Boat Light, CEO of the company, He told NBC on Sunday “Night News” That Chipotle menu price remains intact despite the fact that the cost of the product is expected to rise if and when President Donald Trump's tariffs come into effect.
“It's our intention to sit here today to absorb these costs,” Boatlight told the network.
He acknowledged that the company faces “significant headwinds,” but said Boatlight is in a position to withstand turbulent macroeconomic conditions, such as Chipotle steadily climbing food prices.
“We are fortunate to have this extraordinary economic model at Chipotle, to withstand these kinds of inflationary pressures and not have to pass those costs on to consumers,” Boatwright told NBC News.
“That's what we're trying to do this year. If the rates are temporary, and if they're permanent, let's keep the pricing constant because we don't know how sticky they are to the new administration.”
Boat Light said he didn't think it would be fair to consumers to pass these costs on to consumers because pricing would be permanent.
“And again, go back to the idea of providing exceptional value to consumers. We're going to keep the course,” he said.
Boatlight said, “If we can keep prices constant regardless of what is happening with inflationary pressures, or what is happening with global economic uncertainty, we can give consumers a wealth, if we can. [and] Variety with healthy, fresh ingredients you won't find anywhere else, is how you can deliver value to consumers in 2025. ”
The Trump administration plans to impose tariffs on imports from Canada and Mexico starting Tuesday, but the final rate will be decided by the president, according to Commerce Secretary Howard Luttonick.
Trump warns about the possible 25% tariffs on goods from both countries, citing concerns about illegal drugs and immigrants' influx of immigrants across the United States.
The administration sees these measures as responses to the consideration of inadequate actions from Canada and Mexico in addressing border security issues.
On Sunday, Lutnick confirmed that tariffs would move forward as planned, but noted that their details would depend on ongoing debate.
In addition to these measures, a 10% tariff on Chinese imports is expected.
The US government accused Beijing of not properly restraining the flow of fentanyl to the country, urging this latest trade measure.
If enacted, the new China tariffs will boost total collection on affected goods to at least 20%, following the initial 10% tariffs implemented last month.
In response, Chinese state media reported that Beijing is preparing retaliation measures, potentially increasing tensions between the two biggest economies and increasing the possibility of a wider trade dispute.
Over the past few months, US food prices have experienced moderate inflation.
As of January 2025, the consumer price index for all foods increased by 0.6% from December 2024, a 2.5% year-on-year increase compared to January 2024.
Grocery stores prices increased by 0.8% each month, totaling an annual increase of 1.9%, while restaurant prices increased by 0.2% each month, and 3.4% over the past year, with certain categories such as meat, chicken, fish and eggs seeing more significant price increases.
