Senator Maggie Hassan Seeks Information from Retailers on Impact of Tariffs on Grocery Supply Chain
Senator Maggie Hassan has reached out to major retailers including Albertsons, Kroger, Walmart, Costco, and Dollar General to gather information on how the recent tariffs imposed by the Trump administration on imported steel and aluminum could affect stores, suppliers, and costs in the grocery supply chain.
In a series of letters dated June 18 addressed to the CEOs of these retailers, the New Hampshire senator specifically inquired about the potential impact of the doubled tariffs on the metals, which now stand at 50% as of June 4, on the cost of private label products, particularly canned foods and frozen meals.
Details Requested by Senator Hassan
As the ranking member of Congress’ Joint Economic Committee, Senator Hassan and her Democratic colleagues are particularly interested in understanding how the increase in metal prices could affect the costs of canned goods. She requested the retailers to provide details on their costs, revenue, and profit margins for their top-selling canned food and aluminum foil products over the past five quarters.
Additionally, Senator Hassan sought information on how customers who receive Supplemental Nutrition Assistance Program (SNAP) benefits purchase canned goods, including a breakdown of their purchases between brand name and private label products. She also asked for an estimate of the number of jobs supported by the retailers in industries such as construction, food packaging, and food processing.
Concerns Over Rising Grocery Prices
Senator Hassan emphasized the importance of addressing high grocery prices as a top economic concern for Americans. She highlighted experts’ warnings that tariffs could significantly raise the cost of canned foods and mentioned potential impacts on the costs of shelving, equipment, transportation, and other necessary inputs for grocery stores and suppliers, which could ultimately lead to higher food prices for consumers.
Referring to data from the Consumer Brands Association, Senator Hassan pointed out that the 50% tariff on imported steel could result in a price increase of 9% to 15% for canned foods. She also noted that almost 70% of the steel used for canned fruits and vegetables in the U.S. is imported.
Deadline for Information Submission
Senator Hassan has given the retailers until July 9 to provide the requested information. The Bureau of Labor Statistics reported a 2.2% annual increase in grocery prices in May, indicating a slight rise compared to previous months.
As the impact of tariffs on the grocery supply chain continues to unfold, the data and insights gathered from retailers will be crucial in understanding the potential effects on costs, prices, and ultimately, consumers.