Tariff chaos continues to swirl
of ConsumerAffairsKey takeaways
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Supplier-retailer tension: Albertsons, the nation's second-largest supermarket chain, has warned suppliers it will not accept tariff-related cost increases, risking potential product shortages if suppliers refuse to absorb losses.
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Tariffs and consumer impact: Despite intentions to promote U.S. manufacturing, tariffs may not deliver the expected outcomes, as both suppliers and consumers show resistance to higher prices and shifting production locations.
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'Made in America' reality check: A case study by Afinia showed that while consumers claim to support American-made goods, a price increase from $129 to $239 for a U.S.-manufactured showerhead resulted in zero sales compared to continued purchases of cheaper imports.
Uncertainty surrounding tariffs that began four weeks ago shows no signs of letting up. In the latest incident, the Albertsons supermarket chain has reportedly informed its suppliers that it will not accept any increase in prices to cover the cost of tariffs.
According to the New York Post, Matt Stoller, a researcher at the American Economic Liberties Project, first discovered a copy of the letter that states, with few exceptions, we are not accepting cost increases due to tariffs.
Suppliers are not permitted to include tariff-related costs in invoices without prior authorization by Albertsons Companies, the letter continued. Any invoices that include such charges without prior authorization will be subject to dispute and may result in payment delays.
While that sounds like good news for shoppers, it might not be. Its true that Albertsons is the nations second-largest supermarket chain, but suppliers might be willing to give up that business rather than face deep cuts to profit margins, or even losses.
As a result, shoppers might not find some of their favorite food products on Albertsons' shelves. Albertsons operates more than 2,200 stores in the U.S. under several different brands.
President Trump said his purpose in imposing the tariffs on virtually all imports is to encourage more companies to produce things in the U.S. But again, that miight not work the way the president intends.
Do Americans really want made in America?
Afina, a U.S. company that imports its filtered showerheads from Asia, said it has heard from many Americans that they would pay more for products if they were made in America. So, it conducted an experiment.
Our bestselling modelmanufactured in Asia (China and Vietnam)sells for $129, the company said in a press release. But this year, as tariffs jumped from 25% to 170%, we wondered: Could we reshore manufacturing to the U.S. while maintaining margins to keep our lights on?
The company found a U.S.-based supplier who could produce the showerhead identical to the imported one but the cost rose from $129 to $239. The company created a web page that gave consumers a choice of buying the imported model or the more expensive one made in America.
Out of 25,640 visitors to the site, Afinia said 540 consumers purchased the showerhead made in Asia. No one purchased the one made in the USA.
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Posted: 2025-04-28 14:37:05
