America’s second-largest grocery chain warned its suppliers that the retailer won’t be accepting tariff-related price hikes due to President Donald Trump’s sweeping tariff policies.
Albertsons Companies, which operates more than 2,200 stores across the nation – including Kings, Balducci’s, Safeway and Randalls – informed its suppliers of the policy update in a letter last month, according to American Economic Liberties Project researcher Matt Stoller.
The supermarket chain said the update was made to keep products at competitive prices.
“With few exceptions, we are not accepting cost increases due to tariffs,” the Idaho-based chain said in the letter.
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“Suppliers are not permitted to include tariff-related costs in invoices without prior authorization by Albertsons Companies,” Alberstons continued. “Any invoices that include such charges without prior authorization will be subject to dispute and may result in payment delays.”
The food and drug retailer, which made $80.4 billion in sales during the fiscal year 2024, operates its stores across 34 states and the District of Columbia.
The supermarket giant runs 20 well-known banners, including Albertsons, Safeway, Vons, Jewel-Osco, Shaw’s, Acme, Tom Thumb, Randalls, United Supermarkets, Pavilions, Star Market, Haggen, Carrs, Kings Food Markets and Balducci’s Food Lovers Market.
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It remains unclear how the company’s suppliers have reacted to the new policy or how they plan to absorb the additional costs.
Fox News Digital reached out to Albertsons Companies for more information, but they did not immediately respond.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| ACI | ALBERTSONS COMPANIES | 21.70 | -0.21 | -0.96% |
Fox Business previously reported that grocery retailers are already operating on razor-thin profit margins – often ranging from 1% to 5%, according to The Food Institute Chief Content Officer Kelly Beaton. Such businesses may be inclined to pass costs to retain profit margins, Beaton added.
In recent weeks, Trump imposed a baseline tariff rate of 10% on imported goods from nearly every major U.S. trading partner in an effort to support American-made goods and curb drug flow into the country.
As a result, imported produce such as avocados, alcohol, coffee and seafood are expected to become more expensive for the American consumer.
Fox News’ Daniella Genovese contributed to this report.
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