Albertsons tells suppliers it is ‘not accepting cost increases’ from tariffs

In late March, just before President Donald Trump announced his “Liberation Day” tariffs, Boise-based supermarket giant Albertsons sent a letter telling suppliers to eat the cost of any related price increases.

The letter was obtained by Matt Stoller, the director of research at the American Economic Liberties Project, an anti-monopoly nonprofit. Stoller reported on the letter in his Substack newsletter called Big, and he shared it with the Idaho Statesman.

“Dear valued supplier,” the letter began. “As you know, recent developments indicate the possibility of the United States imposing tariffs on goods imported from several countries.”

Trump dialed back the tariffs days after his announcement April 2 but left a 10% duty on almost all U.S. imports, allowing 90 days to negotiate with most of the countries targeted with a notable exception. Tariffs on China, one of America’s largest trading partners, rose to 145%. 

Albertsons said in the letter that it was writing to clarify its position regarding how the tariffs should be handled in its ongoing partnerships. It told suppliers that if they wanted to raise prices, they would have to get permission first.

“Our customers rely on us for competitive pricing and quality products, and we are committed to maintaining the value proposition our customers expect,” the letter said. “Therefore, with few exceptions, we are not accepting cost increases due to tariffs.” 

The letter said suppliers are not permitted to include tariff-related costs in invoices without prior authorization from the company. 

It said any invoices that include such charges without prior authorization would be disputed and could result in payment delays. If a supplier faces a significant increase in costs because of the tariffs, it can request a cost adjustment for the goods supplied with 90 days advance notice. 

Albertsons did not immediately respond Monday to a request for comment.

This article was originally posted by the Idaho Statesman. The full story and letter can be read here.