Senator Maggie Hassan has reached out to major retailers such as Albertsons, Kroger, Walmart, Costco, and Dollar General to gather information on how the recent increased tariffs on imported steel and aluminum by the Trump administration could impact stores, suppliers, and costs within 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 effects of the doubled tariffs on steel and aluminum, which were raised to 50% on June 4. She is particularly interested in understanding how these tariffs could affect the cost of private label products, with a focus on canned foods and frozen meals.
As the ranking member of Congress’ Joint Economic Committee, Hassan and her Democratic colleagues are keen on understanding the potential impact of rising metal prices on the cost of canned goods. She requested detailed information from the retailers regarding their costs, revenue, and profit margins related to their top-selling canned food and aluminum foil products over the past five quarters.
Additionally, Hassan sought information on how customers who rely on Supplemental Nutrition Assistance Program (SNAP) benefits purchase canned goods, including a breakdown of their preferences between brand name and private label products. She also asked for an estimate of the number of jobs supported by these retailers in industries such as construction, food packaging, and food processing.
“High grocery prices are a significant economic concern for Americans, and experts warn that tariffs could lead to a substantial increase in the cost of canned foods,” wrote Hassan in the letters. She highlighted expert opinions on potential impacts of tariffs on the prices of shelving, equipment, transportation, and other essential inputs that grocery stores and their suppliers require, which could ultimately result in higher food prices for consumers.
Quoting data from the Consumer Brands Association, Hassan mentioned that the 50% tariff on imported steel could potentially raise prices for canned foods by 9% to 15%. She also referenced statistics indicating that the U.S. relies on importing nearly 70% of the steel used for canned fruits and vegetables.
The retailers have been given until July 9 to provide the requested information to Hassan.
According to a report from the Bureau of Labor Statistics on June 11, grocery prices saw a 2.2% annual increase in May. This is in comparison to food-at-home inflation rates of 2% in April and 2.4% in March.