Chipotle opening 1st location south of the border in, yes, Mexico

MEXICO CITY - Chipotle Mexican Grill is coming to Mexico.

According to the California-based chain, the company plans to open its first restaurant south of the border in Mexico early next year. 

Chipotle is coming to Mexico

Chipotle is partnering with Alsea in Mexico City, a company that operates Domino’s, Starbucks, Burger King, Chili’s and other brands in South America and Europe. 

Alsea plans to explore additional expansion in Mexico and other locations in the region.

What they're saying:

 "The country’s familiarity with our ingredients and affinity for fresh food make it an attractive growth market for our company," Lawton said in a statement.

Chipotle expansion amid tariffs on Mexico

Dig deeper:

The expansion arrives as President Donald Trump’s tariffs on Mexican imports could increase costs for U.S. Chipotle locations.

Last week, the U.S. Commerce Department said it plans to withdraw from a 2019 agreement suspending an antidumping investigation into fresh tomato imports from Mexico. That termination, set to take effect July 14, means most tomatoes from Mexico will be subject to a 20.91% tariff.

FILE: Food served at Chipotle Mexican Grill. (Credit: Joe Raedle/Getty Images)

In addition, Chipotle gets around half of its avocados from Mexico, but so far those are not subject to tariffs.

Last month, Chipotle CEO Scott Boatwright said in an interview with "NBC Nightly News" that the company planned to "absorb" the tariffs. 

What they're saying:

"It is our intent as we sit here today to absorb those costs," Boatwright said in an interview that aired on March 2 with "NBC Nightly News," before the tariffs officially went into effect. 

RELATED: Chipotle CEO shares how restaurant chain will handle Trump tariff costs

However, if costs become a "significant headwind," that could change, Boatwright added.

Chipotle’s CEO said during an earnings call in early March that the company sources 2% of its ingredients from Mexico, which includes avocados, tomatoes, limes and peppers, and less than 0.5% of its ingredients from Canada and China. Boatwright previously told analysts during the call that if the tariffs went into effect, "it would have an ongoing impact of about 60 basis points on our cost of sales."

The backstory:

Chipotle, which was founded in Denver in 1993 and has 3,700 restaurants. It plans to open up to 345 new locations this year.