Chipotle Expands to Mexico Amid Trump's Trade Tensions
Restaurant chain plans first Mexican location as trade relations fluctuate
Chipotle Mexican Grill has announced plans to open its first location in Mexico in early 2026, partnering with Alsea, a company that operates various international restaurant chains throughout Latin America and Europe. This expansion comes during a period of strained trade relations between the United States and Mexico under President Donald Trump's administration. The restaurant chain intends to explore additional expansion opportunities in the Latin American region following the initial opening.
The expansion announcement coincides with ongoing trade tensions between the U.S. and Mexico. President Trump recently implemented tariffs on Mexican imports, though he subsequently paused new duties on goods compliant with the United States-Mexico-Canada Agreement (USMCA). Avocados from Mexico were initially subject to a 25% tariff before this pause. Chipotle, which sources approximately half of its avocados from Mexico despite recent diversification efforts, operates within this complex trade environment.
KEY POINTS
- •Chipotle plans first Mexico location
- •Expansion occurs amid Trump tariffs
- •Half of chain's avocados from Mexico
Chipotle's international expansion represents a shift in strategy after decades of focusing primarily on its U.S. operations. The company currently maintains a modest international presence with 58 locations in Canada, 20 in the United Kingdom, six in France, two in Germany, three in Kuwait, and two in the United Arab Emirates. The Mexico expansion marks a significant step in the company's global development strategy, particularly given the cultural significance of entering the country whose cuisine inspired the chain.
The company believes Mexico's familiarity with Chipotle's ingredients and appreciation for fresh food will resonate with local consumers, according to Nate Lawton, Chipotle's chief business development officer. However, history suggests potential challenges ahead, as other American chains offering Mexican-inspired food have struggled in the Mexican market. Taco Bell, owned by Yum Brands, has twice attempted to expand into Mexico, with both efforts failing quickly, highlighting the difficulty of marketing Americanized versions of Mexican cuisine to Mexican consumers.