FOR IMMEDIATE RELEASE
Wednesday, June 18, 2025

 

Senator Hassan Launches Inquiry Into the Impact of Tariffs on Grocery Costs

 

Hassan, as Ranking Member of the Joint Economic Committee, Seeks Information From Major Grocers on Impact of Steel and Aluminum Tariffs

 

WASHINGTON – U.S. Senator Maggie Hassan (D-NH), as Ranking Member of the Joint Economic Committee, is leading an effort to assess the impact that President Trump’s steel and aluminum tariffs will have on grocery costs for everyday Americans. Senator Hassan today sent letters to Albertsons, Dollar General, Walmart, Costco, and Kroger seeking details that will help Congress and the public better understand the impact that these tariffs will have on the cost of food for families, as well as on companies and workers in the grocery supply chain.

 

Ranking Member Hassan wrote, “High grocery prices are a top economic concern for Americans, and experts state that tariffs could significantly increase the cost of canned foods. Experts have also noted potential impacts from tariffs on the costs of shelving, equipment, transportation, and other inputs that grocery stores and their suppliers need to operate, which, in turn, could also lead to higher food prices for customers.” However, as the letters detail, grocery retailers themselves have provided little public information about the potential harms of steel and aluminum tariffs.

 

Ranking Member Hassan also pointed to recent outside data: “New steel and aluminum tariffs could increase store prices for items in steel cans by 9 to 15 percent, according to data released earlier this month by the Consumer Brands Association, whose members include Campbell’s and Del Monte Foods. Increased costs may also coincide with decreasing revenue for retailers; an April survey found that 88 percent of Americans have changed their grocery shopping habits due to economic pressure, and more than a third of these shoppers have cut back on nonessential items.”

 

Senator Hassan’s effort is part of her ongoing work as Ranking Member of the Joint Economic Committee and as a member of the Senate Finance Committee to lower costs for families, including by speaking out against President Trump’s reckless and haphazard tariffs. She recently helped lead a Joint Economic Committee hearing examining barriers to supply chain modernization and ways to enhance U.S. manufacturing productivity. She has also met with New Hampshire businesses to learn more about the rising costs that they are facing in response to the tariffs.

 

Click here to see the letters to Albertsons, Dollar General, Walmart, Costco, and Kroger or see below for text of the letter to Albertsons:  

 

Dear Mr. Sankaran:

 

I am writing to request information about the impact of President Trump’s 50 percent steel and aluminum tariffs on your stores, suppliers, and grocery costs. High grocery prices are a top economic concern for Americans, and experts state that tariffs could significantly increase the cost of canned foods. Experts have also noted potential impacts from tariffs on the costs of shelving, equipment, transportation, and other inputs that grocery stores and their suppliers need to operate, which, in turn, could also lead to higher food prices for customers.

 

The United States imports nearly 70 percent of the steel that manufacturers use in canned fruits, vegetables, and other essential food items. The United States also imports roughly 50 percent of its aluminum, which manufacturers use for basic items like beverage cans, aluminum foil, and packaging. New steel and aluminum tariffs could increase store prices for items in steel cans by 9 to 15 percent, according to data released earlier this month by the Consumer Brands Association, whose members include Campbell’s and Del Monte Foods. Increased costs may also coincide with decreasing revenue for retailers; an April survey found that 88 percent of Americans have changed their grocery shopping habits due to economic pressure, and more than a third of these shoppers have cut back on nonessential items.

 

Experts have also raised concerns about the impact of tariffs on grocery operations and logistics. In a recent interview, Greg Ferrara, President and Chief Executive Officer of the National Grocers Association, asked: “What does [the imposition of tariffs] do to the price of refrigeration? What does that do to the price of store shelving and other displays?” According to Ferrara, suppliers “can’t even touch” certain equipment due to price increases from tariffs. Analysis by the credit rating agency S&P Global underscores the harmful impact of tariffs on these types of suppliers. For example, even prior to the latest steel and aluminum levies, refrigerator manufacturer Carrier Global Corp. and forklift manufacturer Hyster-Yale Inc. already faced potential credit downgrades related to tariffs.

 

Information from Albertsons Companies (Albertsons) can help quantify potential cost increases for consumers, as well as the related consequences for employment in the grocery supply chain. Previous statements from Albertsons partially address impacts that tariffs may or may not have on prices, but these statements have not specifically addressed the impact of potential steel and aluminum tariffs. In its 2024 annual report, Albertsons noted that “[p]roduct and raw material supply disruptions, especially those related to fresh products, may have an adverse effect on our profitability and operating results.” When asked by analysts on an April 15, 2025, investor call to elaborate on the risks of tariffs, an Albertsons executive stated that the company procures more than 90 percent of its products domestically, but “we also recognize though that even in those domestic purchases there are impacts from ingredients that are sourced from tariff impacted areas.” Asked by analysts to discuss plans for new stores, renovations, and other capital expenditures for 2025, the executive said Albertsons would open new stores but declined to provide details on locations, spending, and the factors that might influence these decisions.

 

To aid the Joint Economic Committee – Minority in analyzing the impact of steel and aluminum tariffs, specifically, on food prices and jobs within the grocery supply chain, I request the following information:

1. A description of the supply chain disruptions or cost increases related to steel and aluminum tariffs that you anticipate, how you expect those disruptions or cost increases to vary by location, and the regions in which you anticipate the greatest disruptions or cost increases, including with respect to both food products and durable goods;
2. A description of how steel and aluminum tariffs are projected to impact the costs of private label goods specifically, including but not limited to canned foods and frozen meals, and including specific examples;
3. A description of how disruptions in your acquisition of products, inputs, or transportation associated with steel and aluminum tariffs have manifested, whether in terms of cancelled orders, modification of orders, changes in suppliers, delayed delivery, partial delivery of ordered goods, increased cost of goods, or increased transportation costs, including for both food products and durable goods;
4. Expenses for the last five quarters related to the acquisition and maintenance of durable goods affected by steel and aluminum tariffs, including but not limited to refrigeration, lighting, shelving, and end caps, and including the estimated number of employees and/or contractors employed in the installation, transportation, and maintenance of such goods;
5. An estimate of the number of jobs your company supports directly or indirectly in the construction, manufacturing, transportation, logistics, food packaging, and food processing industries;
6. For each of your top 25 canned food items and top 10 aluminum foil and storage items by sales value:
1. Total inventory cost, total revenue, and profit margin for each of the last five quarters, nationally and by metro area;
2. Data sufficient to show prices before and after:

                                                              i.      Tariffs in effect as of January 1, 2025;

                                                            ii.      Steel and aluminum tariffs in effect as of April 5, 2025;

                                                          iii.      Steel and aluminum tariffs in effect as of June 4, 2025; and

3. A description of the impact of steel and aluminum tariffs on these price changes and how added costs for these items, if any, are distributed through applicable supply chains; and
6. A description of the shopping patterns of SNAP recipients specific to their purchases of canned goods over the past five quarters as well as observed and expected trends with respect to:
1. The proportion of canned goods per SNAP transaction by value;
2. The number of canned goods per SNAP transaction; and
3. SNAP recipients’ mix of brand name and private label canned goods.

 

Please provide your responses as soon as possible but in no event later than July 9, 2025.

 

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