San Francisco restaurants concerned about impact of tariffs on Mexico
After President Donald Trump imposed a 25% tariff on Mexico earlier this week, many local Mexican restaurant owners in San Francisco are concerned about what the future holds.
"Margaritas are a very simple drink. But because all the ingredients come from Mexico, that's going to affect the price," Phil Havlicek, the owner and operator of Celia's by the Beach, told CBS News Bay Area.
He said he buys up to 15 cases of limes weekly, ranging from $30 to $200 a case. Havlicek added that he is concerned expected retaliatory tariffs by Mexico would prompt higher overhead for essential items like limes and tequila.
"I will definitely go to my suppliers and try to stock up on everything that I can at this price point," he said.
According to the Department of Agriculture, the U.S. imported more than $45 billion worth of products from Mexico in 2023. Nearly 75% of those imports included alcohol, fruits, and vegetables.
Avocado is a key import.
"This is $15. If there is a 25% increase, the guacamole appetizer is going to go up towards $20 and if there's a scarcity on avocados and avocados double triple in price? Most restaurants will not just offer that for you on your sandwiches," he said.
Havlicek added that he spends upward of $2,000 on avocados alone each week for all of his restaurants, and said he will have no choice but to soon increase the price on the menu.
"Any more pressure on the consumer is not good. It just started to feel like things were getting better," he said.
But, longtime customers like Billy Cotter shared that a higher tab will not stop him from supporting local businesses.
"They could charge double, and I'd still come here," Cotter told CBS News Bay Area. "If everything's going up, it's going to affect everything we do. Have to work more to pay for things. Yeah, it's not great but what are you going to do? I'm not going anywhere."
And as for Havlicek, he said he will continue to do what he does best— carrying on his grandmother Celia's legacy.
"No matter what's thrown in our way, we stay positive. We just keep figuring out a way to keep on keeping on," he said.