Ahold Delhaize CEO says US tariffs on Canada, Mexico could drive prices up

Adds American consumers in paragraph 1, CEO quote in paragraph 2

By Alban Kacher and Helen Reid

Feb 12 (Reuters) - Supermarket group Ahold Delhaize AD.AS expects potential U.S. tariffs on Mexico and Canada could lead to price increases for American consumers on products from those countries, group CEO Frans Muller told Reuters on Wednesday.

"If there would be tariffs on Mexican fruit and vegetables or Canadian paper products, then we will have an inflationary effect in those categories," Muller said in an interview.

Ahold, which runs U.S. chains including Food Lion, Stop & Shop, and Hannaford, is considering sourcing more products from the West Coast and states such as Florida, should Mexican products become less competitive, Muller added.

"As the vast majority of our product is domestically sourced, there is not a lot of danger coming from the tariffs for our company," he said.

U.S. President Donald Trump on February 1 announced 25% tariffs on most goods from Canada and Mexico, then agreed to hold off imposing them for a month while he negotiates with the United States' two biggest trading partners.

The Dutch group, which on Wednesday reported slightly higher-than-expected fourth-quarter sales, generates more than half of its revenue in the U.S. and has been seeking to keep prices low to retain customers.

The company's second-largest market is Europe.