Albertsons tells suppliers to eat the cost of tariffs: ‘We are not accepting cost increases’

• Grocery Albertsons: It shows a weightless approach to tariffsTelling its suppliers will not accept any price increase according to the company’s sales head letter. “We do not accept the cost of expenses,” says the letter before the permanent confirmation process for full suppliers.

One of America’s largest supermarket chains tells suppliers that they should have expenditures due to the increase in tariffs.

Albertsons, which belongs to 2,200 grocery stores throughout the United States, sent a letter to suppliers in recent spellings of March how it would deal with prices.

“With a few exceptions, We do not accept the increase in costs Because of the tariffs, “the letter reads (emphasis on the original).

“Suppliers are It is not allowed to include costs related to tariffs in the invoices Without Albertson’s prior permission. “It simply came to our notice then.

The second largest food in America explained that this policy is derived from its commitment to “maintain value proposals of our customers.”

Instead, the suppliers will have to cross the multi-layered process to “ask for a change of costs”, which they supply to Albertsons by giving 90 days advancing the company. They need to fill in the cost of changing costs, offer a detailed explanation of tariffs and hand over supported documents such as tariff notices or receipts on duty.

After submitting all the documents, the supplier must wait another 30 days to revise Alberttsons. And even in that case, the confirmation is “not guaranteed”, the letter reads.

Albertsons did not respond to a comment on the letter.

The angel highlights one of many tactical retailers to turn the trumpet again on many items imported again.

President Donald Trump surprised in China in late February in China, Walmart tried such a pressure tactic with his Chinese suppliers reported to ask them Basic price cutsIn some cases, according to Bloomberg by 10%. However, prices were for any suppliers, the margins of which could be less than 2%, and Chinese officials soon began their own. Pressure campaign on WalmartA number

Whereas Contricolative Also trying to transform some of its orders, prices lower to hold CNBC Gives:General Director Andy said to a number of ORO The sellers on the platform will probably try to transfer higher costs to consumers, adding: “I understand why.”

Trump Tariffs have been digged markets and consumer mood go downward because buyers are widely waiting Rising prices As a result of the highest taxes of foreign trade in almost one century.

But Albertsons’ response, the harmful, is also a sign that the chain has its market power like Cudgel, forcing smaller suppliers to turn his will.

Tariffs: “The cost of many items enters the scalp, and suppliers will go out of business if they cannot cover those raised costs,” wrote Thursday, calling Albertsons “absurd”.

David Lady, Executive Editor of Advanced Magazine The prospect of America, Whoever revealed the letter for the first time, kept it as a sign that large companies could freely over rising prices, while smaller competitors would suffer or even be out of business.

“Grocery suppliers whose source or production are abroad, but there will be clear expenses on its products, but such a stepblock will mean that they will have to compensate for the losses of other retailers,” day. ” wroteA number

A similar dynamic has taken place during the chain defendants proposed by the sub-infancy, when large grocery networks have used price increases and requires stricter requirements for suppliers. transmitA number

Albertsons has thousands of places, mainly in Western USA and belong to brands, including Wons, Security, ACME, Shaw’s and Randalls. It’s only size only AppleA number of two chains tried to merge in 2022, it would be the largest in the history of industry, but $ 24.6 billion transaction fell After many legal challenges.

This story was originally shown Fortune.com