Food supply chains in shock as tariffs go into effect, NY Times says

Ahead of the start of the tariffs on Mexico and Canada, many companies were scrambling to build up their inventories or find new suppliers in countries without tariffs, Julie Creswell of The New York Times reports. While Westrock Coffee (WEST), which supplies coffee to major companies, has an easier time storing its products, it is nearly impossible for Sysco (SYY) to do the same with avocados. Now, many companies have to decide whether to bear the additional costs from the tariffs or pass them along to consumers. Chipotle (CMG) has said it intends to bear the costs in the beginning while Target (TGT) has already said it will raise the prices on fruits and vegetables. Mondelez International (MDLZ), Diageo (DEO), and Constellation Brands (STZ) each have factories in Mexico and Canada that make produce a decent amount of the goods sold in the U.S.