06-03-2025
US tariffs could have ripple effects for local restaurants
FAYETTEVILLE, Ark. (KNWA/KFTA) — Though President Donald Trump delayed automotive industry tariffs on Mexican and Canadian imports by one month, 25% taxes on all other goods coming into the United States may affect restaurants in Northwest Arkansas and the River Valley.
Restaurants are among the biggest industries that could be affected by the tariffs. Avocados, berries, tomatoes, bell peppers, sugar snap peas and tequila, all key imports from Mexico, could be affected along with canola oil from Canada, according to Jeff Cooperstein, a senior research associate at the Center for Business & Economic Research at the University of Arkansas' Sam M. Walton College of Business.
If these tariffs remain in effect — which Cooperstein said is hard to forecast — he said prices for both businesses and customers would likely increase.
Trump announces 1-month delay on Canada, Mexico tariffs for automakers
'Restaurant profit margins are pretty low,' Cooperstein said. 'I think it's very unrealistic to assume that restaurant owners are going to be able to internalize that entire tax themselves. They're going to pass on at least a percentage of the tariff increase to their consumers.'
One restaurant that may feel the brunt of these tariffs is Sabor Guacamole, located at 1120 N. Lindell Ave. in Fayetteville, as a decent number of appetizers and entrees include the use of avocados.
Yair Cordero, the son of owners Jorge Cordero and Cristina Vargas, said the cost of a case of about 25 avocados fluctuates regularly.
'I know that the lowest we've had them was like $45,' Yair Cordero said. 'The highest we've had them was about $70 per case.'
Yair Cordero said between the name, logos and reputation of the restaurant, he knows customers are likely going to order guacamole, an avocado-based dip.
However, if prices continue to rise as a result of the tariffs in place, Yair Cordero said the business will have to balance how many avocados it orders each time.
'I'd say, if it were to happen, worst-case scenario we run out of avocados,' Yair Cordero said. 'I'll worry about having to change the name (of the restaurant).'
Cooperstein said the construction industry in Arkansas could be impacted if the tariffs stay in place due to the reliance on Canadian lumber. He said the Natural State's aircraft, arms and pipe manufacturing production could be impacted if the price to get steel and aluminum from Mexico also continues to increase.
Cooperstein said 'consumer power' holds weight in economics, so if the prices of goods are too high, he suggests avoiding buying them. He also suggests calling attention to the high prices at the stores selling those products.
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