President Donald Trump appears quite confident in his measure to apply a 20 percent tax on all imported goods from Mexico. The downside to that whole plan would be the drastic rise in prices of Mexican goods.
There’s a good chance that even before Trump imposes his 20 percent tax raise that the next time an American consumer reaches for an avocado, a handbag made in Mexico, or even a favorite Mexican beer, the price will be more. This will be done as a defensive measure on Mexico’s end if the 20 percent tariff ever takes place.
The rise in prices for things like avocados, which already sell for roughly $2.49 per pound, would spike higher than the 20 percent tax. This won’t bode well for smaller restaurants who won’t be able to compete against larger chains who can easily afford the increase in price. As for consumers, the prices at restaurants will likely soar 30 percent as they try to make more money to compensate for higher cost of goods.
Operations manager at AMK Kitchen, Daniel Ghaowi, says the increase in price on things like Mexican arbol chile, jalapeños, and tomatoes would have to be cut from his menu. There’s no way that local farmers would be able to compensate for the large quantities restaurants need.
Ghaowi commented Trump’s attempt at a tax on Mexico calling it a “tax on the American people.”
Since it was reported in 2012 that more than 62 percent of fresh vegetables were imported from Mexico and 32 percent of fresh fruit, it’s safe to assume that nearly every American will be directly affected by this tax.
