(Reuters) - U.S. companies have begun to respond to President Donald Trump’s proposed tariffs on Mexican imports with mixed comments on the effects they would have on them and their customers.
The tariffs currently set for 5%, will rise every month until they reach 25% on Oct. 1, unless Mexico takes action to curb illegal immigration.
The higher levies are expected to result in an increase in prices in everything from cars to avocados for American consumers.
The following is a list of comments from companies on the proposed tariffs:
Chipotle Mexican Grill Inc
The U.S.-based Mexican-themed chain estimated a $15 million hit from Trump’s proposed tariffs on Mexican imports, and said it could cover that by raising burrito prices by around 5 cents.
The company also said its margins would be reduced by 20-30 basis points if the tariffs were to take effect.
Chipotle does not disclose how much it imports from Mexico, but according to its last annual filing, a “substantial volume” of its produce is grown in Mexico and other countries.
Levi Strauss & Co
The jeans maker said the proposed tariffs would have a negligible impact on the company this fiscal year and that it would be able to substantially mitigate the effects of the levies in fiscal 2020 and beyond.
Levi’s sources some of its products from Mexico, but does not disclose how much.
Wright Medical Group
The medical device maker said the proposed tariffs would have an immaterial impact on the company as it does not have any plants in Mexico, and both its customer and supply base in the country are very small.
The U.S. auto parts maker said if the Trump administration levied a 5% tariff on Mexican imports, it would cost the company $17 million per month.
Company executives said Aptiv imports products worth a little over $3 billion a year from Mexico.
Compiled Uday Sampath in Bengaluru; Editing by Shinjini Ganguli
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