Fast food, a casualty of trade war

The tariff skirmish between Mexico and the United States will cause an imported cheese price hike , mainly in the cheese varieties used in fast foods such as pizzas, hamburgers, nachos, and canned food.

Two weeks ago, the Ministry of Economy announced Mexico would levy certain U.S. products in retaliation to the U.S. decision to impose taxes on Mexican steel and aluminum.

This means there will be an impact on “the cheeses we import the most and we use the most in food services, hotels, restaurants, and fast food. In the first place we have the mozzarella for pizza, then gouda cheese, cream cheese , Monterrey Jack , and Parmesan ,” said the President of the National Dairy Industry Chamber (CANILEC), Miguel Ángel García Paredes.

This cheese list was previously levied during the Felipe Calderón administration to put pressure on the United States so they complied with a NAFTA provision on cross-border trucking – that is, allow Mexican trucks to enter U.S. soil.

The cheeses now subjected to taxes are frequently used by hotels and restaurants in dishes like omelets, enchiladas , chilaquiles , burgers, and pizza. According to our sources, renowned fast food chains would be among the hardest-hit businesses by this measure.

Regarding apples , the most affected variety will be the Red Delicious, which may cause significant damages to Washington and Oregon producers.

Other U.S. industries which will see a price increase will be the automotive industries and the household appliances one, given that steel and aluminum represent 90% of their components, according to Gerardo Vázquez, trade expert from the Law School Escuela Libre de Derecho .

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