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McDonald’s faces major challenges as President-elect Donald Trump’s proposed tariffs threaten to disrupt supply chains and escalate inflation. The fast-food giant’s plan to introduce a new “McValue” menu in 2025 could face obstacles due to rising costs for imported goods and retaliation from foreign trading partners.
Trump, who has often expressed his love for McDonald’s, announced plans to impose an additional 10% tariff on Chinese imports and a 25% levy on goods from Canada and Mexico. While the policy aims to boost domestic production and employment, economists warn it could lead to higher consumer prices and supply chain disruptions.
According to Jason Miller, a professor at Michigan State University, the tariffs are expected to drive up the costs of labor and raw materials. “This could put pressure on fast-food chains that are already struggling with inflation,” Miller explains. McDonald’s CEO Chris Kempczinski has previously acknowledged that rising prices are scaring away low-income customers, making the situation even more precarious.
Inflation is a threat to McValue Menu
The introduction of McDonald’s “McValue” platform is part of the company’s strategy to attract price-conscious customers. The platform offers deals like the $5 Meal Deal and a “Buy One, Add One for $1” promotion, which offers discounts on popular menu items. However, rising costs for labor and supplies, exacerbated by Trump’s tariff plans, could undermine the initiative.
Since 2019, McDonald’s menu prices have increased by 40%, with the cost of a Big Mac increasing from $4.39 to $5.29. These price increases have already impacted the chain’s customer base, especially among households making less than $45,000 annually. As tariffs continue to drive up costs, maintaining affordable menu prices will become increasingly challenging.
Economists also predict that retaliatory tariffs from other countries could worsen the situation. For example, China, a crucial market for McDonald’s with nearly 6,000 outlets, could impose countermeasures that hinder the company’s expansion plans. “There would be no winner in a trade war,” the Chinese embassy in Washington said, warning of the economic impact on US companies operating in China.
Public reaction: Mixed opinions on McDonald’s challenges
Social media users have spoken out on the issue and the responses reflect divided opinions:
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