How Tariffs Could Hurt America's Independent Grocers
The National Grocers Association (NGA), the trade association representing the nation’s independent community grocers, sent a letter on April 28 to Federal Trade Commission Chair Andrew Ferguson calling for close monitoring and enforcement action in response to the competitive risks posed by new and proposed tariffs on imported goods.
In its letter, NGA warned that rising tariffs could disrupt the food supply chain, much like the early days of the COVID-19 pandemic, when it said that dominant national retail chains secured priority access to scarce products while smaller, independent and regional grocers were left to deal with empty shelves and frustrated customers.
“Independent grocers once again face the risk of being pushed to the back of the supply line if tariffs trigger product shortages,” said Chris Jones, the chief government relations officer at NGA. “We are already seeing public news of large national chains pressuring suppliers to absorb tariff-related costs, worsening existing power imbalances and threatening fair competition.”
NGA mentions similar disruptions in its letter, referencing FTC’s own 2024 report that documented supply chain disruptions during the COVID-19 pandemic. The report concluded that suppliers were forced to prioritize large national chains, leaving independent and regional grocers with product shortages and higher prices.
“When Main Street grocers are sidelined in favor of dominant chains, we risk a repeat of 2020, which neither community grocers nor their customers can afford” Jones added.
In the letter, NGA specifically called on the FTC to:
- Issue a statement to market participants to remind suppliers of their obligations under the Robinson-Patman Act that prices, promotions and services must be provided to large and small purchasers on proportionately equal terms;
- Monitor how tariff-related disruptions affect supplier pricing and product allocation across retail channels;
- Investigate whether dominant grocery chains are using their buyer power to extract anticompetitive concessions or impose the cost of tariffs on smaller competitors; and
- Enforce existing antitrust laws, including the Robinson-Patman Act, to prevent the use of buyer power to distort fair competition in the food supply chain.
“As President Trump works to rebuild American industry, it’s vital that we ensure the same communities the president is trying to help are not harmed by anticompetitive practices,” Jones continued. “Independent grocers are the backbone of food access in rural and disadvantaged communities across the country — and they deserve a fair shot.”
Washington D.C.-based NGA is the national trade association representing the retail and wholesale community grocers that comprise the independent sector of the food distribution industry. An independent retailer is a privately owned or controlled food retail company operating a variety of formats. The independent grocery sector is accountable for about 1.2% of the nation’s overall economy and is responsible for generating more than $250 billion in sales, 1.1 million jobs, $39 billion in wages and $36 billion in taxes. NGA members include retail and wholesale grocers located in every congressional district across the country, as well as state grocers’ associations, manufacturers and service suppliers.
