Another week of tariff drama ends in another delay for USMCA partners. We also saw some unexpected drama in the retail world with a shocking departure from Kroger.
Trump tariffs
If it seems like the proposed 25 percent tariffs on products from Mexico and Canada change every day, that’s because they do. They’re on another one-month pause.
“This is crazy! How can a president operate like that?” some people say.
This is not new territory for us. Trump used the same negotiating style in his first term as president, and one of the results was the signing of the USMCA free trade deal, which he is now essentially renegotiating.
But prior to that, Trump explained his business and negotiating style in a bestselling book nearly 40 years ago, called The Art of the Deal.
On March 5, we talked to Rebeckah Adcock, International Fresh Produce Association (IFPA) BB #:378962 vice president of U.S. government relations, for the latest information, and she said produce leaders are optimistic new agriculture secretary Brooke Rollins can be some help for the fresh produce industry. Rollins has publicly cited IFPA and its messaging and data.?
Then, Thursday morning, U.S. Commerce Secretary Howard Lutnick said Canadian and Mexican imports compliant with USMCA may not have a tariff until April, as negotiations with the two countries continue. Trump confirmed that later Thursday, as a pause is in place until April 2.
Of course, things will change again, so don’t be surprised. It’s like we say about the weather in the Midwest: if you don’t like it, wait a few hours and it will change.
Kroger leadership
On Monday, March 3, seemingly out of nowhere, Kroger Chairman and CEO Rodney McMullen resigned from the company following a board investigation of his personal conduct that Kroger said, while unrelated to the business, was inconsistent with its ethics policy.
The board appointed director Ron Sargent to serve as interim CEO and chairman of the board of directors.
No details have emerged as to the personal conduct, but McMullen forfeited more than $11 million in bonuses, according to SEC filings.
Our readers will remember McMullen was a keynote speaker at the IFPA Global Show last October in Atlanta, so clearly none of this personal conduct issue was known at the time.
Albertsons leadership
Kroger’s partner in a failed merger also announced leadership changes this week.
Albertsons Companies announced a CEO succession plan under which Susan Morris, executive vice president and chief operations officer, will assume the role of CEO following the planned retirement of Vivek Sankaran, effective May 1, 2025.
Morris has spent nearly 40 years working for Albertsons and its subsidiaries.
Considering the upheaval at the two retail giants that wished to merge—but courts disallowed due to competitive conflicts—one wonders if the outcome would have been different had they waited to take their chances under a Republican presidential administration rather than Democratic.
