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The second largest edible chain in the United States warned its suppliers that the retailer will not accept price increases related to the rate due to the tariff policies of President Donald Trump.
Albertsons Companies, which operates more than 2,200 stores throughout the country, including Kings, Balducci’s, Safeway and Randalls, informed their suppliers of policy update in a letter last month, according to the American Economic Liberties Project Researcher Matt Stoller.
The supermarket chain said the update was made to maintain products at competitive prices.
“With few exceptions, we do not accept cost increases due to tariffs,” said the Idaho headquarters in the letter.
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A buyer enters an Albertsons grocery store in Portland, Oregon. (Istock / Istock)
“Suppliers cannot include costs related to the rate in invoices without prior authorization by Albertsons companies,” Alberstons continued. “Any invoice that includes such charges without prior authorization will be subject to disputes and can result in payments.”
The food and drug retailer, who won $ 80.4 billion in sales during fiscal year 2024, operates its stores in 34 states and the Columbia district.
The supermarket giant executes 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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The oranges are shown for sale in the products section of a grocery store in Albertsons in San Diego, California. (Bing Guan / Bloomberg / Getty Images)
It is not clear how the company’s suppliers have reacted to the new policy or how they plan to absorb additional costs.
Fox News Digital contacted Albertson’s companies for more information, but did not respond immediately.
| Heart | Security | Last | Change | Change % |
|---|---|---|---|---|
| Aci aci | Albertsons companies | 21.72 | -0.19 | -0.87% |
Fox Business previously reported that groceries are already operating with razor razor profit margins, which often go from 1% to 5%, according to the content director of the Food Institute, Kelly Beaton. Such businesses may be inclined to approve costs to retain profit margins, Beaton added.
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President Donald Trump has a table of “reciprocal tariffs” while speaking during a commercial event “Make America Wealthy Again” on April 2, 2025. Trump has slapped a 10% basal rate rate in almost all important commercial partners. (Somodevilla / Getty images / getty images)
In recent weeks, Trump imposed a 10% basal tariff rate in goods imported from almost all US commercial partners in an effort to support US manufacturing goods and curb drug flow in the country.
As a result, imported products such as avocados, alcohol, coffee and seafood are expected to become more expensive for the US consumer.
Daniella Genovese de Fox News contributed to this report.
