Dining out could soon start costing a little more as new tariffs on Mexico, Canada and China will likely drive up the prices of popular imports and key food items.
As a large amount of avocados, tomatillos, dried chile and even tequilas sold in California is brought in from Mexico, Southern California’s bars and restaurants are bracing for higher costs for them as well as their customers.
Elvira’s Grill in Claremont has a significant portion of its ingredients, like tomatoes and tomatillos for salsas, imported from Mexico.
“Another thing that we use a lot of is the limes,” Oscar Torres, the owner of Elvira’s Grill, said. “All of our margaritas are made with fresh lime juice, and we go through 150 cases a week in this restaurant.”
The 25% tariffs, which were first proposed in February then delayed for 30 days in response to concessions from Mexico and Canada on Immigration, went into effect Tuesday. Pres. Trump cited a continued influx of drugs across America’s borders.
An additional 10% tariff on Chinese goods also took effect.
“If we buy about $100,000 worth of produce in general, add another 25% into that. That’s going to have a huge impact on our costs,” Torres explained, saying he’s stocking up on tequila products before prices go up.
“We are trying to get about 100 cases of tequila shipped in just to be ready so if prices increase, it doesn’t take effect right away,” the bar owner said.
As retailers like Target expect consumers will likely to absorb the higher prices, small business owners like Torres also believe that they will have to pass the cost burden onto customers and patrons.
“The only way you can offset it is by increasing the prices, which is concerning because the tariffs are going to take place,” Torres said.
According to the U.S. Department of Agriculture, nine out of 10 avocados consumed in the U.S. are imported from Mexico.
Tomatoes, berries, peppers are also top imports from the neighboring county as well as tequila, which cannot be made anywhere else in the world.
Restaurant and bar owners will also likely face the additional ripple effects of the tariffs.
“What happened to the everyday consumer? They’re not going to be able to go out as much because it’s too expensive, so that’s going to have a huge impact,” Torres said.
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