This money does not stop with President Trump.
The second largest supermarket chain in North America warns of its suppliers that won allowing price increases due to Trump’s rates spree.
Albertsons, which operates more than 2,200 grocery stores, including Balducci’s, Kings and Acme in the New York area, eliminated a monitor to its suppliers at the end of last month, explaining that suppliers must obtain authorization for significant price increases.
“With few exceptions, we do not accept cost increases due to tariffs,” said the letter, first discovered by the American Economic Liberties Matt Stoller project.
“Suppliers cannot include the costs removed from rates in invoices without prioritization by Albertsons companies,” added the Idaho headquarters, “any invoice that includes such charges without prioritization.
If suppliers because to fight for an exemption, they must present a notification three months in advance by completing forms that detail the impact of tariffs on their products and provide evidence.
From there, Albertsons will review the application, which can take 30 days. The conglomerate of groceries warned that ensuring a price increase “is not guaranteed.”
Stoller, who conducts antitrust research, criticized Albertsons’ demands, suggestion that they are not reasonable.
“That is absurd, since the cost of many items will increase, and suppliers will extend if they cannot cover those biggest costs, hey in a newsletter.” However, arrogance speaks of the power of buyers such as Albertsons. And Albertsons is nothing compared to Walmart or Amazon. “
In recent weeks, Trump has slapped 10% of the basal rate against Virtual and all goods that arrive in the United States. It has also impressed an automotive tariff of 25%, a 25% rate on steel and aluminum, and 25% of the import rate of Canada and Mexico that do not comply with the United States-Mexico-Canada agreement (USMCA).
The products that come from China are subject to a rate of 145%, with limited exceptions.
Meanwhile, the president has granted countries until July 8 to obtain a new commercial agreement with the United States or face even tariffs, with customized rates by country.
In response, prominent retailers have leg pressure on their suppliers so as not to increase prices.
Walmart, for example, has pressed its Chinese suppliers to make price cuts to mitigate the impact of tariffs, but the Chinese government has tried to counteract that effort, Bloomberg reported.
Amazon is also working to negotiate some of his contracts to prevent prices from increasing significantly.
Stoller believes that current dynamics is similar to the “moment of covid supply shock.”
“Many orders are canceled, and scarcity and prices changes will happen strangely and unpredictablely,” he predicted.