In a letter sent to suppliers in March 2025, Albertsons told vendors that, with few exceptions, it “is not accepting cost increases due to tariffs,” according to reporting by BoiseDev. The grocery giant further advised that any tariff-related surcharges added to invoices without prior approval could cause disputes and payment delays.
Supermarket News and Grocery Nerd confirmed that suppliers seeking an exception must submit a detailed request — including documentation on the tariff’s direct financial impact — at least 90 days in advance. Albertsons will then review the submission within 30 days, but approval is “not guaranteed,” the letter emphasized.
The letter, first uncovered by American Economic Liberties Project researcher Matt Stoller, states, “Suppliers are not permitted to include tariff-related costs in invoices without prior authorization by Albertsons Companies,” adding, “Any invoices that include such charges without prior authorization will be subject to dispute and may result in payment delays,” as reported by the New York Post.
If suppliers want to seek an exemption, they must notify Albertsons three months in advance and fill out detailed forms explaining the tariff’s impact, complete with supporting documentation. Albertsons warned that even then, “approval is not guaranteed.”
The firm stance from Albertsons comes amid sweeping tariffs imposed by President Trump, including a 10% baseline tariff on virtually all goods, a 25% tariff on automobiles, steel, and aluminum, and a 145% tariff rate on goods from China. President Trump has also given countries until July 8, 2025, to negotiate new trade deals with the U.S. or face further customized tariffs.
Matt Stoller criticized Albertsons’ hardline policy, calling it “absurd” and warning it could drive some suppliers out of business. “Yet, the arrogance speaks to the power of buyers like Albertsons. And Albertsons is nothing compared to Walmart or Amazon,” he wrote.
Other retailers like Walmart and Amazon are also pressuring suppliers to find ways to absorb the tariffs without raising prices, according to Bloomberg reports.
“Our commitment to delivering competitive pricing and quality products to our customers remains unchanged,” the letter read, according to Grocery Nerd’s report. Albertsons also cautioned suppliers not to expect automatic price acceptance and warned that unauthorized cost increases would not be tolerated.
For customers, this could mean a major grocery chain is taking active steps to shield their wallets from immediate price spikes, even as supply chain costs rise behind the scenes. However, some industry experts warn that if suppliers collapse under the strain, shortages or unpredictable price shifts could still occur.
Albertsons Companies is one of the largest food and drug retailers in the United States, with over 2,200 stores in 34 states and the District of Columbia. Its well-known banners include 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.
The company recently announced a quarterly cash dividend of $0.12 per share and reported full-year fiscal results showing net sales and other revenue of $81.9 billion for 2024, up from $79.8 billion in 2023.
Daily Voice has emailed Albertsons requesting a copy of the full letter to suppliers and has yet to hear back.
This is a developing story. Check back for updates.
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https://dailyvoice.com/pa/doylestown/albertsons-tariff-stance-may-protect-grocery-prices/