By Alban Kacher and Helen Reid (Reuters) – Supermarket group Ahold Delhaize expects U.S. tariffs on Mexico and Canada to lead to price increases for food and vegetables as well as paper products, group CEO Frans Muller told Reuters on Wednesday. Ahold, which runs U.S. chains including Food Lion, Stop & Shop, and Hannaford, is […]
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Ahold Delhaize CEO sees US tariffs on Canada, Mexico driving prices up
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By Alban Kacher and Helen Reid
(Reuters) – Supermarket group Ahold Delhaize expects U.S. tariffs on Mexico and Canada to lead to price increases for food and vegetables as well as paper products, group CEO Frans Muller told Reuters on Wednesday.
Ahold, which runs U.S. chains including Food Lion, Stop & Shop, and Hannaford, is considering sourcing more products from the West Coast and states such as Florida, should Mexican products become less competitive, Muller added.
“As the vast majority of our product is domestically sourced, there is not a lot of danger coming from the tariffs for our company,” he said.
U.S. President Donald Trump on February 1 announced 25% tariffs on most goods from Canada and Mexico, then agreed to hold off imposing them for a month while he negotiates with the United States’ two biggest trading partners.
The Dutch group, which on Wednesday reported slightly higher-than-expected fourth-quarter sales, generates more than half of its revenue in the U.S. and has been seeking to keep prices low to retain customers.
The company’s second-largest market is Europe.
(Reporting by Alban Kacher and Helen Reid; Editing by Tomasz Janowski and Sharon Singleton)