U.S. Tariffs on Mexico, Canada May Raise Food, Paper Prices, Ahold CEO Says
Ahold Delhaize expects U.S. tariffs on imports from Mexico and Canada to lead to price increases for food, vegetables, and paper products, CEO Frans Muller told Reuters.
The supermarket giant, which operates chains like Food Lion, Stop & Shop, and Hannaford in the U.S., is exploring alternative sourcing options from the West Coast and states like Florida.
"As the vast majority of our product is domestically sourced, there is not a lot of danger coming from the tariffs for our company," Muller said.
Despite sourcing most products domestically, Ahold Delhaize still faces potential price increases for imported goods.
The company's revenue heavily relies on the U.S., where it generates over half of its income. Ahold Delhaize aims to maintain low prices to retain customers.
The Dutch group, which posted slightly higher-than-expected fourth-quarter sales, has Europe as its second-largest market.