David Dayen: I obtained a letter Albertsons sent to its suppliers

[Passages]

it is "not accepting cost increases due to tariffs." That means suppliers will raise prices on Albertsons' competitors that have less market power. This is one way Trump's tariffs entrench monopolization. (link below)


Only big companies can afford lobbyists who can win tariff exemptions. Only big companies can absorb increases in input costs and opportunistically raise prices above them.
“A lot of little businesses are going to go away,” said one small business owner.


How the Trump Tariffs Assist Monopoly

Imposing market power on suppliers or seeking special exemptions from the president are not avenues available to small businesses.

by David Dayen April 15, 2025
https://prospect.org/economy/2025-04-15-how-trump-tariffs-assist-monopoly/

All the wrong kind of change is coming.

[Bernardo de La Paz]

1. They can say they aren't accepting cost increases and suppliers can say they aren't accepting orders from Albertsons. nt

[Ms. Toad]

4. Unfortunately, that is not realistic.

The point is that suppliers can't afford to lose the elephant-in-the-room customers. So they force smaller companies with less bargaining power to pick up the costs Albertson's is refusing to pay.

That's the Walmart game, or the Texas schoolbook game. Both get their way because they are the customers who are too big to turn away.

[Bernardo de La Paz]

5. I understand, but there will be pushback and Albertsons will not get its way completely

I posted elsewhere that small businesses do not have the leverage that the giants do.

[krkaufman]

13. Walmart

I was thinking exactly of the Walmart example as I was reading your reply. What was it, Rubbermaid?, that Walmart basically forced into cheap Chinese manufacturing?

[Ms. Toad]

16. It was Rubbermaid, but I don't remember the details.

Aside from "What Walmart wants, Walmart gets.)

[CrispyQ]

2. This: All the wrong kind of change is coming.

[Passages]

3. Yes. The Grifter in Chief never stops.

[Irish_Dem]

6. The tariffs are a way to wipe out smaller businesses.

Big companies can buy them up on the cheap, or just gain more market share.

[Passages]

7. Oh yes, the power grabs are part of the design...the bigger picture.

[Hornedfrog2000]

10. Dont forget

They will jack up prices after they buy up, and put all the other competition out of business.

[CloudWatcher]

8. And then ...

Even if the suppliers are forced to eat the increases from tarrifs, what are the odds that Albertsons will still go ahead and raise their prices to consumers? After all their "competition" will have to raise their prices, so ... great news for them!

[CharleyDog]

9. All the small business that Biden administration worked so hard

to build up the little guy. Biden created the path for so many Mom and Pop start up businesses, many that grew
into successful job creators.

[WestMichRad]

11. As Sen. Chris Murphy pointed out,

The primary purpose of his tariff binge is to create a system to shake down businesses. If they are willing to pay a suitable tribute, they’ll get exemptions. If not, they’ll pay. And of course TSF will be collecting a sizable portion of the revenue gathered… just like a mafia don.

[Passages]

18. Yes, just like a mobster.

[Mblaze]

12. Maybe Albertsons needs to accept

A massive loss in their customer base.

[bucolic_frolic]

14. Connections help

Elaine Chao

In August 2021, Chao was elected to the board of directors of the Kroger supermarket chain.[119] In 2021, Chao also joined the Board of Trustees of the John F. Kennedy Center for the Performing Arts.[120]

https://en.wikipedia.org/wiki/Elaine_Chao

[Passages]

19. That's interesting, thank you.

[Maru Kitteh]

15. But ima bet they still plan to charge more, "competitively."

So clearly their plan is to tell their supplier to eat the extra cost while they grow even larger profits.

Sounds about right.

[newdeal2]

17. Tariffs create corruption

And destroy competition. The MAGAs who voted for this monster because he is pro-business won’t get that until it’s too late.