The extra small amount of guacamole on the burrito may cost more in the coming days.
President Trump’s new tariffs, if as planned, are expected to raise prices for Mexican avocado, beer and tequila, are all very popular imports among Californians.
Business owners and consumers in the state expect costs and labels to soar.
“We are supporting,” said Luis Navarro, owner of two Mexican restaurants in Long Beach, named after his late mother Lola. “Immediately, we start trying to figure out what our reaction will be because we will be directly affected. [And] We sell a lot of tequila. ”
Luis Navarro, Lola’s restaurant owner.
(Eric Thayer / Times)
Alcohol and production sellers urged Navarro to place an order by Saturday, when Trump’s 25% tariff on Mexico’s imports was initially expected to take effect.
The tariffs were raised in early February, and then delayed imports from Mexico and Canada for 30 days in response to concessions between the two countries on immigration issues. The president said last week that Trump ordered tariffs to take effect on Tuesday as drugs spread across the U.S. borders continue to influx, especially fentanyl.
“We cannot allow this scourge to continue to harm the United States, so the proposed tariffs scheduled to take effect for the fourth time in March will indeed take effect as planned until it ceases or is severely restricted.” Trump releases The truth about his social media platform social networking, Thursday.
On Monday, Trump reiterated that 25% tariffs on Mexican and Canadian goods and additional tariffs on Chinese goods will take effect as planned.
Prices began to rise even before the tariffs took effect.
The wholesale cost of 48 big avocados last week increased from $75 to $85, Navarro said.
He fears he has no choice but to raise the price of his enchilada suizas, a fan of avocado slices, as well as his spicy watermelon margaritas and Mexican mus.
Fill beer glasses on the faucet in Lola’s restaurant in Long Beach.
(Eric Thayer / Times)
“Modelo Especial is the number one beer to sell beer in a restaurant. All the avocados we get, all our dried chili and beans, a lot of them are from Mexico. Navarro said it was a tough thing.
Restaurant chains may be more likely to get through costs than moms and popular clothing.
Chipotle CEO Scott Boatwright says fast casual Mexican restaurant There is no plan to increase the price of avocado sauce. Although he warned that this could change depending on how long the tariffs last.
“We think it’s unfair to consumers to transfer these costs to consumers,” he told NBC Night News on Sunday. “That’s what we meant this year. Let’s keep pricing constantly because we don’t know if the tariffs are short-lived, if they will be permanent, how tricky they will be in the new administration.”
2024, Mexico Exports $505.9 billion in goods According to the U.S. Trade Representative, the U.S. Highest exit According to the U.S. Department of Commerce, it includes vehicles, machinery and agricultural products. Except for avocado, other Top agricultural imports According to the USDA, it includes tomatoes, strawberries, raspberries and chili.
Brooke Institutional Economist The think tank predicts that tariffs will reduce U.S. GDP, employment, wages and exports, while increasing inflation, especially if Mexico responds with retaliatory tariffs.
Californians are national Top Consumers of Mexican AvocadoAccording to a report by Professor A&M of Texas to Hass Avocado Import Assn in Mexico, $602 million of HASS varieties were imported in the fiscal year 2023-24.
In addition to being mashed to make avocado sauce, avocados have become a culinary staple in the United States due to their creamy texture and healthy fat and fiber content, which is reflected in the ubiquity of the Southland Brirning menu.
Per capita consumption In the U.S., 1.5 pounds in the U.S. have increased to more than 9 pounds in 2023, according to a report from the University of Florida. According to the USDA, while American farmers grow almost all avocados here, nine out of the 10 avocados consumed in the country are imported from Mexico.
Avocado sauce at Lola’s restaurant in Long Beach.
(Eric Thayer / Times)
“Americans consume a lot of avocados, and almost all of the avocados we consume come from Mexico,” said Mark Jones, a political science professor at Rice University in Houston, who focuses on public policy in Latin America.
He said that while the cost will certainly increase, the amount will depend on the amount of exporters, importers, wholesalers, retailers and grocers.
“For many Americans, the idea of tariffs often sounds good in abstractions, which is the idea of protecting the U.S. industry and protecting the U.S. from foreign competition,” Jones said. “Avocado provides a concrete example – when you’re concerned with the tax, consumers pay more for the goods and services they consume.”
Jay Devera, left, Javier Torres and Allen Mina at Lola Restaurant in Long Beach.
(Eric Thayer / Times)
Fitness Gym’s first step boss Javier Torres, 33, said potential price staples will affect his life because he works as a personal trainer for two reasons as he urges clients to urge them to consume avocados due to their nutritional content, while his Mexican roots.
“It will affect every aspect of my life from the sense of our diet, our diet and the sense that we’ve been eating,” said Torres, a Long Beach resident.
Tariffs, depending on how long they stay, may affect the prices of other agricultural products later this year, as different regions grow seasons (such as berries). They will immediately affect Mexican beer and tequila. The latter can only be produced by the blue agave plants in Jalisco and a few other small pieces in Mexico.
Americans are the largest consumers of tequila, while Californians drink the most — the 9-liter 9-liter case in 2023, according to STATISTA.
Chris Swonger, president and CEO of the Distillation Spirit Committee, said that while they support Trump’s efforts to secure the border, combat fentanyl, increase U.S. manufacturing and reduce trade deficits, tariffs will have a disproportionate impact on his industry due to its unique nature.
“You can’t make tequila in the United States,” he said.
Trucks enter the United States from the Detroit Ambassador Bridge in Ontario, Canada.
(Paul Sancya/AP)
Swonger said the commission has been working with its counterparts in Mexico and Canada to try to stop a trade war on alcohol exports. He added that tariffs on tequila and Canadian whiskey could lead to mutual tariffs that harm U.S. handcraft stills, which have multiplied exponentially in recent decades, including California.
“If we get stuck in a sell-off trade dispute with tariffs, that will have a significant impact,” Swonger said. “This will affect consumers in the United States – it will have an impact on prices.”
Brad Sims, 52, said he was most worried about how tariffs affect the price of tequila. Republicans say he voted for Trump in 2016 and 2024, despite his dislike of the president.
“I don’t need him to be my moral compass. I don’t need him to be my pastor. I care more about what personally affects me – taxes, inflation,” Sims said. “I would be happy if he could help control this. But it remains to be seen.”
Sims commented on lunch with Matt Troyka, a Democrat who voted for Kamala Harris in 2024.
Long Beach residents say that despite their political views, they see tariffs as a strategic effort by Trump to force the concession of the U.S.’s largest trading partner.
“I think there are a lot of positions, a lot of postures,” said Troyka, a 52-year-old marketer at the food company. “He probably knew it wasn’t a good idea.”
Although Troyka said he would be angry if he saw the extra cost of avocado sauce, it was at a time when many expenses increased.
“Everything is rising,” he said.
