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The Tariff Relation Between Mexico And America — an article on the Smart Living Network
December 30, 2019 at 10:03 AMComments: 0 Faves: 0

The Tariff Relation Between Mexico And America

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Tariff a tax on import that has a relation between two countries. The tariff works in favor of the producers of the products. This will bring in more revenue and the consumer will be happy with the product that was purchased. However, what will happen if something goes wrong. When the tariffs become too expensive and people dont want to buy it. This is currently going on with Mexico avocados and it causes a riff between Mexico and America.

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Avocados can be used as dairy substitutes to improve overall health. This can be from being vegan, dieting, or even lactose intolerance. For instance, making smoothie needs milk products such as milk, yogurt, or even ice cream. Just replace the milky product with avocado for the same creamy texture of the smoothie.

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Avocados can even be used in brownies. Simply just remove the butter and replace it with avocados. Avocado salad dressing is a popular alternative due to the fact that it can be made into a thick texture for the salads. Avocados can be an options for pasta sauces, tacos cream, and even mousse to replace any milk product.

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Businesses

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Those food examples can be used in the food business, especially in the restaurant industry. When tariffs are being used against business owners, it will have a ripple effect. Financial crisis can occur or even possible restaurants closing. The economy will spiral downward as a result. According to:Some reports have suggested that the U.S. would run out of avocados in three weeks. This show how important avocados are in America.

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A lot of Mexican style restaurants depend heavily on avocados because it is used constantly on the menu. Avocados has became the main attractions gradually over the years because it has flavor to the food. Business owner notices how quickly the price increase had happened from the tariffs being in place. If continue with the price hike for the avocados, business owners will become frantic and will soon re-strategize the foods on the menu.

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Chipotle

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Chipotle is one of the largest restaurant chains in America and in the Mexican style route. This restaurant is deeply disappointed because the effects already kicking in. According to: Chipotle Mexican Grill says tariffs on Mexican goods could increase its costs by about $15 million in 2019 and reduce margins by 20 to 30 basis points. Chipotle already taking into effect in raising the prices on the other foods that is offered.

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The price increase will balanced the financial loss and try to make any financial gains as well.Not only the tariffs on the avocados is causing trouble, but, in the stock market as well. Investors immediately noticed that the stock prices decreased. Other Mexican style restaurants stock prices went down as well, but, Chipotle was affected first. Also, Chipotle is aware that the rise of food prices has gone up, but the increase of avocados prices is hard to swallow. In the second quarter it became a 1% increase all because of the tariffs.

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