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Chipotle’s CEO Scott Boatwright said the burrito chain will hold its prices steady despite impending Trump tariffs on Canada and Mexico. Tariffs on Mexico could affect half of Chipotle’s avocado supply. Boatwright said the company could raise prices in the future if costs become a “significant headwind.”
As consumers prepare for possible price increases from Trump’s tariffs, burrito chain Chipotle said it will hold its prices steady, even though half of its avocado supply could be affected.
Chipotle chief financial officer Adam Ryner said during its quarterly earnings call last month that the company foresees a 0.6 percentage point increase in its costs on a rolling basis due to tariffs. But for now, the company will absorb any price increases, said Chipotle’s CEO Scott Boatwright in a Sunday interview.
“We don’t think it’s fair to the consumer to pass those costs off to the consumer, because pricing becomes permanent. And so again, back to the idea of delivering extraordinary value to the consumer. We’re going to stay the course,” Boatwright told NBC Nightly News.
President Trump last month gave Mexico and Canada a month-long extension on 25% tariffs, which ends Tuesday. On Sunday, Commerce Secretary Howard Lutnick said the tariffs would go ahead as scheduled but that the president’s team would decide the levels based on negotiations, the BBC reported.
Possible tariffs on Mexico could hit Chipotle especially hard, as 50% of its avocado supply comes from Mexico. The U.S. imported 90% of all its avocados, or about $2.7 billion, from Mexico in 2024, according to the USDA.
Chipotle has tried to diversify its avocado sourcing for years, Boatwright said during February’s quarterly earnings call. The company has expanded its suppliers to include Colombia, Peru, and the Dominican Republic.
Although Chipotle is holding prices constant for now, it may be forced to raise prices in the future if costs become a “significant headwind” for the company, Boatwright said.
The CEO cautioned it’s unclear how tariffs will develop in the future and how long they might last and continue to affect prices.
“That’s our intent this year. Let’s hold pricing constant, because we don’t know if the tariffs are transitory, if they’re going to be permanent, how sticky they’ll be in the new administration,” Boatwright said.
This story was originally featured on Fortune.com