Albertsons, one of North America’s largest supermarket chains, has notified its suppliers that it will not automatically accept price hikes tied to newly imposed tariffs under the Trump administration.
The company, which operates more than 2,200 stores nationwide, is requiring suppliers to seek approval before raising prices related to tariffs. Suppliers must submit detailed documentation at least three months in advance, and approval is not guaranteed.
This move comes as a response to the latest tariff measures, which include a 10% baseline on most imports, a 25% tariff on automobiles, steel, and aluminum, and a 145% tariff on goods imported from China.
Albertsons’ policy mirrors a growing trend among major retailers, including Walmart and Amazon, who are also urging suppliers to absorb the added costs instead of passing them on to consumers.
While some suppliers argue that this approach is unrealistic and could strain relationships, Albertsons maintains that the policy is necessary to protect consumers from sharp price increases. The company sources about 90% of its products domestically but acknowledges that domestic goods are still vulnerable to cost pressures from tariffs on imported components.
Albertsons’ firm stance highlights the increasing challenges retailers face as they navigate trade policy changes while trying to shield shoppers from rising prices.