“Consumers will be faced with higher prices and will be less protected from the impact than was the case with Chinese tariffs, as price increases for items like food will be more directly observable.”
–Tom Orlik, Felipe Hernandez and Carl Riccadonna
Americans should be prepared to pay more for guacamole, avocado toast, and many other items at restaurant chains like Chipotle Mexican Grill Inc. or Panera Bread Co. Fruit is on almost half of American menus. , according to Chicago-based researcher Datassential, imports accounted for more than three-quarters of the U.S. avocado market last year, according to the Hass Avocado Board. Prices soared last month as Trump threatened to close the border.
Mexico is a favorite haunt for some of the best TV makers in the world. Samsung Electronics Co. makes about 9 million devices a year in factories in Mexico and LG Electronics Inc. makes about 4 million, according to Eric Chiou, Taipei-based analyst at WitsView. Higher tariffs will hit those companies, which depend on North American sales for about a quarter of their television revenues. Taiwanese electronics maker Foxconn Technology Group, which produces around 2 million Sony-branded TVs nationwide, has facilities in Baja California and Chihuahua.
New tariffs could hit companies like Constellation Brands Inc. The Victor, New York-based wine and other alcoholic beverage seller distributes Mexican brands Corona and Modelo and held 5.3% of the North American beer market in 2018, according to data from the National Association of Beer Wholesalers.
Modelo Especial is the # 1 imported beer in the United States, Constellation boasts in a recent press release announcing a partnership with a Chicago-based nonprofit.
Like France with its champagne regulations, Mexico strictly controls the brand of tequila. Mexican law requires that the name tequila only apply to agave products from five states in the country.
Prices may increase for Jose Cuervo de Tequila Cuervo La Rojena SA, made in the city of Tequila. Global giant Diageo Plc owns Casamigos, the tequila brand co-founded by actor George Clooney that London-based Diageo Plc agreed to buy in 2017 for as much as $ 1 billion. Diageo also owns the Tequila Don Julio, made in the western state of Jalisco.
This article originally appeared on Bloomberg.