Military store officials are watching closely to see what effects tariffs may have on their stores and customers, and they’re trying to minimize extra costs.
Officials with military exchanges expect tariffs to affect their stores, including the availability and cost of certain items. In some cases, suppliers have been stockpiling inventory ahead of time as they wait to see the impact.
President Donald Trump has imposed tariffs on products coming in from China, Mexico and Canada, although he has since eased up on some of the tariffs on Mexico and Canada — at least until April 2, when more tariffs are expected. He has imposed a 20% tariff on goods imported from China.
Defense Commissary Agency officials are working with their suppliers to determine what potential effects the tariffs might have on groceries. Officials “cannot yet confirm any specific impacts, if any, of tariffs on commissary pricing or product availability,” said commissary spokesperson Kevin Robinson.
Commissary agency officials always work with suppliers to negotiate the best cost, Robinson said. The commissary agency “consistently provides savings of 25% or better to patrons, and anticipates maintaining those savings in the future,” he said.
Tariffs may not affect commissaries initially because not much food is imported, explained Steve Rossetti, president of the American Logistics Association, a trade group representing suppliers of products sold in commissaries and exchanges, as well as in morale, welfare and recreation resale outlets. Commissaries are likely to see impacts if retaliatory tariffs are enacted, he added.
Rossetti expects the military exchanges will see more effects of the tariffs. Tariffs affect prices across the country, and while military stores and customers will be affected, it won’t be disproportionate to civilians, he said.
“It’s up to each retailer and their merchandising strategy as to whether they pass it on to the customer,” he said.
One advantage military shoppers have is that they don’t pay sales tax on items in commissaries or exchanges. However, they do pay a 5% surcharge in commissaries, which goes toward renovations and construction of stores.
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Savings at military exchanges compared to civilian stores varies depending on the item.
“We have worked aggressively with our suppliers to offset as much of the tariff impact as possible to minimize the burden on our customers,” said Bryan Driver, spokesperson for the Marine Corps Exchange.
Some Marine Corps Exchange suppliers have stockpiled inventory to weather any short-term tariffs, Driver said, so those products might not be as affected. But exchange officials expect to see 10% to 20% tariffs on many categories, including computers, home office accessories, bikes, general sporting goods, patio items, storage, paint, automotive and alcohol, he said.
Tariffs ranging from 5% to 15% may affect apparel and other categories, such as baby gear, baby essentials, athletic shoes, boots, flip flops, slippers, cold weather accessories, slippers and luggage, Driver said.
Navy Exchange Service Command officials are watching closely, too, and have asked their merchant teams to hold off accepting cost increases or raising retail prices until they’ve had a chance to fully evaluate the situation, said spokesperson Kristine Sturkie.
“This also gives us a chance to evaluate options with our current and alternative vendors to mitigate the impact of cost increases as much as possible,” Sturkie said.
“We could feel some pressure in several categories, depending on where they are sourced and where products are coming from,” she said. “We’re keeping a close watch on apparel, footwear, home goods, electronics, accessories, health and beauty items and travel gear. These seem to be the most sensitive at the moment based on shifts in trade policy.”
Army and Air Force Exchange Service officials say categories that likely will be affected include electronics, appliances, food, beverages, toys, footwear, outdoor furniture, clothing and seasonal products. Tariffs on raw materials will have an effect on domestically produced goods with imported content, said AAFES spokesperson Julie Mitchell.
“However, the effects cannot be determined at this time, as they are dependent on a myriad of unknown factors,” Mitchell said, such as how tariffs are added or changed in the future, what actions suppliers and manufacturers may take, how competitors respond and how customers react.
China and garlic
Meanwhile, those who depend on getting their garlic in the commissary needn’t worry about a provision included in the fiscal 2025 National Defense Authorization Act that bans commissaries from selling fresh or chilled garlic originating from, or processed in, China.
“We have no garlic products originating from China,” Robinson said. “Thus the ban presents no impact to commissaries.”
Karen has covered military families, quality of life and consumer issues for Military Times for more than 30 years, and is co-author of a chapter on media coverage of military families in the book “A Battle Plan for Supporting Military Families.” She previously worked for newspapers in Guam, Norfolk, Jacksonville, Fla., and Athens, Ga.
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