US supermarket giant sounds price hike warning over Trump-imposed tariffs

28 April 2025, 09:19

One of North America's largest supermarket chains has told its suppliers they will not accept increased prices related to Trump-imposed trade tariffs.

Albertsons, the second biggest grocery chain on the continent with more than 2,200 supermarkets, drew a hard line declaring they will not tolerate any unauthorized price hikes.

In a letter obtained by BIG, the company whose stores including Balducci's, Kings and Safeway, said: "Our customers rely on us for our competitive pricing and quality products, and we are committed to maintaining the value proposition our customers expect."

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Albertsons acknowledged that hiked-up foreign taxes may put pressure on many businesses, but suppliers are not to include tariff-related fees in their invoices without the chain's approval.

"Therefore, with few exceptions, we are not accepting cost increases due to tariffs, the message reads. The company explained that if a supplier absolutely must increase their costs, they have to provide at least 90 days notice before billing Albertsons any differently.

Suppliers must also provide valid proof that tariffs really are increasing the price of their products. 

Albertsons will then look over the request, which could take another month before it gets okayed or denied.

President Donald Trump has placed a temporary pause on his tariffs giving most nations until the beginning of July to work out new trade policies with America. 

But there is still a universal 10 percent tariff rate on almost every good being imported into the US.

He has also imposed 25 percent tariffs on automotive parts and vehicles, as well as on steel and aluminum.

Mexico and Canada have been hit with a 25 percent tax on most goods coming into the US, except those covered under the United States-Mexico-Canada Agreement. 

China has been slammed with the heftiest tax of all - a 145 percent rate with hardly any exceptions.