It’s possible that lightly arrives with that extra guacamole in the burrito and costs more in the coming days.
President Trump’s new tariffs are expected to raise prices for Mexican avocado, beer and tequila if they come into effect on Tuesday as planned.
State employers and consumers are hoping to see costs and tabs surge.
“We’re becoming brave,” said Louis Navarro, owner of two Mexican restaurants in Long Beach, named after his late mother, Laura. “Suddenly, we began to try and understand what our reaction would be like to be directly affected. [And] We sell a lot of tequila. ”
Louis Navarro, owner of Laura’s restaurant.
(Eric Sayer/Because of the era)
Alcohol and sellers urged Navarro to issue an order before Saturday, when Trump’s 25% tariff increase on Mexican imports was initially expected to take effect.
The tariffs were first proposed in early February and later delayed 30 days with Mexican and Canadian imports in response to concessions from two countries on immigration issues. Trump ordered tariffs to be enforced Tuesday due to the continued influx of drugs, particularly fentanyl, across the US border, the president said last week.
“We cannot allow this tragedy to harm the United States, and therefore the proposed tariffs scheduled to come into effect on March 4th will actually take effect on schedule,” Trump will actually implement this on Thursday,” he posted on his social media platform.
On Monday, Trump reiterated that a 25% tariff on Mexican and Canadian goods and a 10% tariff on Chinese goods would be effective as planned.
Even before the tariffs came into effect, prices began to rise.
Wholesale costs for the 48 large avocado crate increased from $75 to $85 last week, Navarro said.
He was worried that he had no choice but to raise the price of the Enchilada Suza, accompanied by a fan of avocado slices and spicy watermelon margarita and Mexican mules.
Fill a beer glass from a tap at Laura’s restaurant in Long Beach.
(Eric Sayer/Because of the era)
“Modelo Special is number one selling beer in restaurants. Every avocado we get, all the dried chili and our beans, many of which come from Mexico. Navarro added that these increases in costs will occur in the aftermath of the pandemic closure, inflation, increased minimum wage and increased insurance costs.
Restaurant chains may be more likely to survive the increased cost than mom and pop outfits.
Chipotle CEO Scott Boatwright said Mexico’s fast Mexican restaurants are currently not planning to raise prices for guacamole, but warned that it could change depending on the length of tariffs.
“I don’t think it’s fair to consumers to pass these costs on to consumers as pricing will be permanent,” he told NBC Nightly News on Sunday. “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.”
In 2024, Mexico exported $55.9 billion in goods to the United States, according to the US Trade Representative. According to the US Department of Commerce, the best exports include vehicles, machinery and agricultural products. In addition to avocados, other top agricultural imports include tomatoes, strawberries, raspberries and peppers, according to the US Department of Agriculture.
Economists with Brooking facilities think tanks predict that tariffs will reduce US gross domestic product, employment, wages and exports, especially if Mexico responds with retaliatory tariffs.
According to a report by Mexican Hass Avocado a The Assun professor, Californians are national consumers of Mexican avocados, importing $662 million in 2023-24.
Not only is it mashed to create guacamole, but avocados have become a staple in American cuisine due to their creamy texture and healthy fat and fiber content.
According to a report from the University of Florida, per capita consumption in the United States has increased from 1.5 pounds in 1998 to over 9 pounds in 2023. And while American farmers once grew almost all of the avocados consumed here, nine out of the 10 avocados consumed in the country are now imported from Mexico, according to the US Department of Agriculture.
Guacamole from Laura’s restaurant in Long Beach.
(Eric Sayer/Because of the era)
“They’re focused on public policy in Latin America,” said Mark Jones, a political science professor at Rice University in Houston.
He said that costs certainly increase, but the amount depends on the amount that exporters, importers, wholesalers, retailers and grocery stores will absorb the extra costs.
“The idea of tariffs sounds abstractly to many Americans. It’s the idea of protecting the US industry and protecting the US from foreign competition,” Jones said. “Avocados provide a concrete example. If there is tariff, consumers pay more for the goods and services they consume.”
Jay Debera, left, Javier Torres and Allen Mina at Laura’s restaurant in Long Beach.
(Eric Sayer/Because of the era)
Javier Torres, owner of the 33-year-old first step fitness gym, said potential price spikes will affect his life for two reasons. Because he encourages his clients to eat avocados because of their nutritional content and Mexican roots.
“This affects every aspect of my life in terms of what we eat, how we eat, and what we’ve been eating forever,” said Torres, a Long Beach resident.
Tariffs may affect the prices of other produce later in the year due to the growth seasons of various regions such as berries, depending on the duration of their existence. Even more quickly, they will have an impact on Mexican beer and tequila. The latter could only be produced from the blue agave plant in Jalisco and a few other bands in Mexico.
According to Statista, which tracks market and consumer data, Americans are tequila’s biggest consumers, while Californians will drink 9 litre cases of around 6.3 million in 2023.
Chris Swonger, president and CEO of The Distilled Spirits Council, supports Trump’s efforts to secure borders, crack down on fentanyl, increase American production and reduce trade obstacles, but said tariffs will have a disproportionate impact on his industry due to its unique nature.
“You can’t make tequila in the US,” he said.
The truck enters the United States from Ontario, Canada, across the Ambassador Bridge in Detroit.
(Paul Sancy/Applications)
The council is working with its counterparts in Mexico and Canada to stop the trade war over liquor exports, Swonger said. He added that tariffs on tequila and Canadian whiskey are likely to result in mutual tariffs that harm American craft distilleries, which have increased numbers in recent decades, including California.
“If you get caught up in a tough trade dispute with tariffs, that will have a huge impact,” Swonger said. “It affects American consumers. It affects prices.”
Engineering consultant Brad Sims, 52, said he was most concerned about how tariffs will affect tequila prices. Republicans said they voted for Trump in 2016 and 2024, despite their dislike of the president, because of his economic views.
“I don’t need him to be my moral compass. I don’t need him to be my pastor. I personally am more concerned about selfish affecting me – taxes, inflation,” Sims said. “And if I can help him control them, I’ll be happy, but at this point I don’t know yet.”
Sims commented while having lunch with Democrat Matt Troika, who voted for Kamala Harris in 2024.
Despite different political views, Long Beach residents said they viewed the tariffs as a strategic effort by Trump to force concessions from the country’s largest trading partners.
“I think there’s a lot of positioning, a lot of attitude,” said Troika, a 52-year-old marketer at a food company. “He probably knows that it’s not a long-term idea.”
Troika said he would be frustrated if he saw the extra charges of guacamole, but that comes when many costs increase.
“Everything is up,” he said.
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