**United States**: Albertsons, a leading US food and drug retailer, has told suppliers it will not accept tariff-related cost increases without prior approval, warning of payment disputes for unauthorised charges. This policy aims to protect consumer prices but may strain suppliers financially amid ongoing trade tensions.
Albertsons, one of the largest food and drug retailers in the United States, has taken a firm stance against passing on tariff-related cost increases to its suppliers. In a letter sent to vendors in March 2025, the company communicated that, with only a few exceptions, it will not accept cost increases attributed to tariffs, according to reports from BoiseDev. This directive includes a warning that any tariff-related surcharges added to invoices without prior approval could lead to payment disputes and delays.
The letter outlines a strict protocol for suppliers seeking exceptions. Such suppliers must submit a detailed request at least 90 days in advance, including comprehensive documentation demonstrating the direct financial impact of the tariffs on their operations. Albertsons commits to reviewing these submissions within 30 days but emphasises that approval is not guaranteed. As noted in the letter, “Suppliers are not permitted to include tariff-related costs in invoices without prior authorization by Albertsons Companies,” and any unauthorized charges “will be subject to dispute and may result in payment delays,” as reported by the New York Post.
This policy has emerged in the context of extensive tariffs imposed by the Trump administration, which include a baseline 10% tariff on most goods, a 25% tariff on automobiles, steel, and aluminium, and a particularly steep 145% tariff on certain goods from China. Added pressure comes with a government deadline set for July 8, 2025, after which failure to negotiate new trade agreements could result in further customised tariffs.
Matt Stoller, a researcher with the American Economic Liberties Project who first uncovered the letter, criticised Albertsons’ approach, describing it as “absurd” and warning it might “drive some suppliers out of business.” He underscored the significant power held by major buyers like Albertsons, remarking, “And Albertsons is nothing compared to Walmart or Amazon.” Indeed, other retail giants such as Walmart and Amazon are reportedly also pressuring suppliers to absorb tariff costs without price increases, according to Bloomberg.
Albertsons’ letter stresses the company’s ongoing commitment to competitive pricing and product quality for customers while signalling that automatic price acceptance is off the table and unauthorised cost increases will be rejected. This move is likely intended to protect consumers from immediate grocery price spikes amidst rising supply chain costs. However, industry experts caution that if suppliers fail under financial strain, it could lead to shortages or unpredictable price fluctuations in the future.
Albertsons operates more than 2,200 stores across 34 states and the District of Columbia. Its portfolio includes renowned banners such as 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. The company recently announced a quarterly cash dividend of $0.12 per share and reported fiscal 2024 net sales and other revenue of $81.9 billion, an increase from $79.8 billion in 2023.
The Mamaroneck Daily Voice has reached out to Albertsons for a full copy of the letter but has not yet received a response. This story is developing, and further updates are expected.
Source: Noah Wire Services
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