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Conagra, the tomato producer owned by Hunt's, may raise prices to offset tariffs.

Conagra Brands, the maker of Chef Boyardee, may need to raise prices to offset tariffs on cocoa, olive, palm and steel products used in its canned food, said CEO Sean Connolly on Thursday.

Connolly said in an interview that the possible increases are meant to protect Conagra's profit margins so it can continue investing in its Chicago-based business and in new products.

Connolly stated that he would "look at everything, from (seeing) whether there is an alternative supply source which is cheaper" to getting the most out of productivity programs. We'll also consider targeted pricing, because at the end, we need to protect our margins.

On Wednesday, U.S. president Donald Trump announced new tariffs that will increase the cost of many consumer purchases. These include cars, wine, and electronics. Trump already imposed tariffs on aluminum and steel.

Connolly stated that Conagra sources the majority of its tin-mill steel from overseas for their canned tomatoes and chili. Connolly stated that this type of steel was exempted from the tariffs Trump imposed during his first term because it is not commonly manufactured in the United States.

The CEO stated, "We are a large canning business." All of them use tin-mill steel that is sourced outside the U.S. from different countries.

Connolly confirmed that Conagra buys vegetables in Mexico. However, these purchases could be exempted from tariffs due to a separate agreement.

Connolly stated that it was still too early to predict the size of price increases on food products.

The Consumer Brands Association (a trade group that represents companies like Conagra) has been pressing the Trump administration to waive import tariffs for products such as tin-mill steel, which aren't available in the United States. (Reporting from Jessica DiNapoli, New York; and Ananya Marym Rajesh, Bengaluru. Editing by Bill Berkrot.)

(source: Reuters)