In June, Sen. Maggie Hassan sent public letters to grocery giants Costco, Walmart, Kroger, Dollar General, and Albertsons asking them to quantify the impact of President Donald Trump’s 50% tariffs on steel and aluminum imports. In a statement, Hassan wrote that while experts have pointed to the possibility of tariffs in general driving up prices, “grocery retailers themselves have provided little public information about the potential harms of steel and aluminum tariffs.” Now the Democratic senator is looking for specifics, such as how exactly the tariffs could disrupt supply chains, raise costs, and impact jobs. Coming up with clear answers to these questions could prove a challenge, however, as many retailers simply don’t have a firm grasp on how steel and aluminum imports—or other material inputs for that matter—fit into their cost structures. “The challenge, especially on the derivative side, is trying to figure out what the value of the steel or aluminum in that finished product is,” Jonathan Gold, VP of supply chain and customs policy at the National Retail Federation, told Retail Brew. Figuring this out requires working with vendors to dig into supply chains and figure out where inputs are coming from and what their value is, Gold explained. However, those intermediaries are facing their own challenges from Trump’s trade policy, and what shakes out price-wise for the consumer could depend on what kinds of deals retailers and consumer brands work out behind the scenes. Keep reading here.—AV |