Prices at fast-food restaurants may go up because of new tariffs imposed by President Trump. Trump calls these tariffs a “declaration of economic independence.” He says the goal is to help the US economy grow. The president has set a 10% tariff on all imports. On top of that, 60 countries are facing extra tariffs. This includes countries like China, Mexico, and Canada. These new tariffs affect the cost of ingredients many fast-food chains rely on. As a result, the price of menu items might rise. Fast-Food Hit restaurants could see significant changes.
McDonald’s Affected by Beef Tariffs
McDonald’s is one of the restaurants that could raise prices. The fast-food giant relies on beef from countries like Brazil, Paraguay, and Argentina. These countries are now hit with a 10% tariff on all goods. McDonald’s has already raised prices over the last few years due to inflation. The price of a Big Mac has gone up by 21% since 2019. Big Mac meal prices have increased by 27%. With the new tariffs, McDonald’s might face even higher costs. This could mean higher prices for customers at the counter. Fast-Food Hit businesses like McDonald’s will need to adapt.
Subway Faces Higher Costs from Multiple Countries
Subway is also struggling with higher ingredient prices. Some of Subway’s vegetables, like bell peppers, come from Canada. Under Trump’s new tariffs, almost all products from Canada will now be taxed by 25%. This increase could push prices up at Subway restaurants. On top of that, Subway imports products from Mexico and Guatemala. Both of these countries are facing tariffs as well, at 25% and 10%, respectively. Subway is already dealing with sales declines. If the trade war with Canada and Mexico keeps going, it could hurt Subway even more. This Fast-Food Hit might challenge Subway’s pricing strategies.
Wendy’s Dealing with Tariffs on Palm Oil and More
Wendy’s, another popular fast food chain, could see prices rise due to higher ingredient costs. Wendy’s buys its beef from US suppliers, so it’s not affected by tariffs on beef. However, Wendy’s also uses palm oil, which comes from Indonesia. Indonesia is now facing a 32% tariff on palm oil. Wendy’s says it tries to use palm oil responsibly, but the tariff could still raise the cost of its products. In addition to palm oil, Wendy’s buys lettuce and tomatoes from Canada and Mexico. Both of these countries are affected by tariffs as well. Wendy’s could also experience a Fast-Food Hit.
Tim Hortons Coffee Prices Might Go Up
Tim Hortons, a coffee and donut chain, could also raise prices. The company buys its coffee from countries like Colombia and Guatemala. These countries are both facing a 10% tariff. Tim Hortons also supports Canadian egg farmers. These eggs are used in the chain’s breakfast sandwiches and wraps. Some of the baked goods at Tim Hortons come from Ontario. While these tariffs don’t affect all of Tim Hortons’ ingredients, the price of coffee could rise as a result. Consequently, Tim Hortons might endure a Fast-Food Hit.
Burger King Could See Beef Price Hikes
Burger King, a competitor to McDonald’s, may raise prices too. Burger King gets a large amount of its beef from Australia. Last year, the company imported nearly 400,000 tonnes of beef from Australia. But now, Australia faces a 10% tariff on all exports to the US. This could raise the cost of burgers at Burger King. In addition, Burger King also imports beef from New Zealand. New Zealand is also facing a 10% tariff, which could affect burger prices as well. This tariff change represents a Fast-Food Hit for Burger King.
Chipotle’s Costs Going Up Because of Tariffs
Chipotle, known for its burritos, could face higher costs too. The chain gets beef from several countries, including the US, Canada, New Zealand, Australia, and Uruguay. Uruguay now faces a 10% tariff on its exports to the US. Chipotle also gets some of its produce, like tomatoes and peppers, from Mexico. In addition, it imports a small amount of ingredients from China. China has faced high tariffs for a while, but recently, the US added a 50% tariff on Chinese goods. This could raise the prices of ingredients at Chipotle, making its meals more expensive. Overall, these changes could result in a Fast-Food Hit for Chipotle.
Dunkin’ Might Raise Coffee Prices
Dunkin’, known for its coffee and donuts, could raise its prices as well. Dunkin’ sources its coffee from countries like Brazil, Colombia, Mexico, and El Salvador. All of these countries are now affected by the tariffs. The increase in coffee prices could lead Dunkin’ to raise the cost of its drinks. However, Dunkin’ also sources many ingredients from the US, so it may not face the same issues with other products. Still, coffee prices could go up, affecting customers who rely on Dunkin’ for their daily caffeine fix. This increase might also be considered a Fast-Food Hit.
