For more than two years, Ethan Frisch, CEO of Burlap & Barrel, has been working to bring a batch of heirloom chiles known for their rich flavor and health benefits from a farm in Querétaro, Guanajuato, Mexico, to American consumers.

In 2023, the first batch of peppers failed due to drought and insect damage. Frisch spent the next year finding a professional processor, making research trips and setting up a farm to export instead of going through a third party.

The 2024 crop was successful, with the farm harvesting approximately 1,360 kg of processed and ground chili.

The joy was short-lived, as chili products ready to be exported to the US encountered problems with tariffs of up to 25%. This wiped out profits or if the chili reached American consumers, it would be at a very high price.

green ot copy.jpg
Mexican chili peppers have a distinctive flavor. Photo: BI

“This is a pepper that we want to be an everyday spice in the American kitchen. With the 25 percent tariff, we have to recalculate the price. We are worried about whether we can sell all of this because the raw materials are already expensive,” he said.

Failure to sell a significant amount of chilies this year means the project cannot sustain itself for another year to build a market. Even at a higher price, the average American household will not buy them.

He added that this type of chili has different names and uses in Mexico depending on the time of harvest, color, thickness, moisture content and drying method. Besides being a spice, chili is also good for health. The compound capsaicin in chili can help reduce inflammation, muscle recovery and arthritis.

The chiles Frisch has spent years exporting are the guajillo, ancho and pasilla. The guajillo is fresh and light in color, while the dried ancho and pasilla have a strong flavor that ranges from tomato to dark chocolate. These are the only heirloom native chiles grown in Mexico imported to the United States.

mexico warehouse copy.jpg
Dried chili has a distinctive flavor, grown only in Mexico. Photo: BI

“Each chili pepper is unique. The plant is highly adaptable and can vary significantly in flavor and spiciness depending on the growing region,” says Frisch.

Rick Bayless, a chef who runs Michelin-starred Mexican restaurants, is waiting for these peppers to arrive in the United States. “The Mexican peppers inspire me to cook,” he said. “Many diners are interested and curious to try them, but they rarely have the opportunity.”

Bayless said he used to grow some peppers, but they didn’t taste as good. The new tariffs could limit his access to exotic produce and force him to remove some dishes from his restaurant’s menu.

“We, the food importers and chefs, communicate regularly. We all live in fear, not knowing what will happen. It is easy to stock up on steel, but restaurants cannot keep much fresh food to avoid tariffs,” he regretted.

(According to BI)