While rising tariffs are pushing some US retailers to raise prices, Home Depot says it's keeping prices steady — even if that means pulling certain items off shelves.
This move stands in contrast to Walmart, which recently warned shoppers about upcoming price increases due to import taxes.
According to CBS News, Home Depot made the announcement on May 20, reassuring customers that it plans to maintain current pricing across its product range, despite a 30% tariff now in place on many goods from China.
"Because of our scale, the great partnerships we have with our suppliers and productivity that we continue to drive in our business, we intend to generally maintain our current pricing levels across our portfolio," said CFO Richard McPhail during an interview with CNBC.
Billy Bastek, Home Depot's executive vice president of merchandising, added that while the company is avoiding price hikes, some products may no longer be available.
During a recent call with analysts, the company acknowledged that some products could be discontinued if new tariffs make them unfeasible within their pricing structure.
Executives noted they are evaluating which items remain viable under the potential cost changes.
This pricing decision follows comments from Walmart, which warned earlier this month that even lower tariffs would still lead to higher prices for customers. Walmart CEO Doug McMillon said, "Even at the reduced levels, the higher tariffs will result in higher prices."
BREAKING: Home Depot chooses not to increase prices despite tariffs, gaining an edge over its competitors - CNBC pic.twitter.com/mnZEtCFMdG
— Resist the Mainstream (@ResisttheMS) May 20, 2025
Home Depot Avoids Tariff Fallout with US-Focused Sourcing
President Trump responded to Walmart's warning by calling on the retailer to absorb the cost of tariffs instead of passing it on to customers.
"Walmart made BILLIONS OF DOLLARS last year," he posted on Truth Social. "They should... 'EAT THE TARIFFS,' and not charge valued customers ANYTHING."
Home Depot seems to face lower risk from potential tariffs on Chinese goods, making it less exposed than retailers like Walmart. CEO Ted Decker told investors that the company aims to reduce its dependence on any one country.
"Within 12 months, no country outside the US will represent more than 10% of our purchases," Decker said.
Currently, more than half of Home Depot's products are made in the US, giving it greater flexibility in managing supply chains and avoiding extra costs.
Despite steady prices, Home Depot did see a slight dip in operating margins, which dropped from 13.9% to 12.9% this past quarter Reuters said.
For the quarter ending May 4, the company reported net sales of $39.86 billion, edging past expectations. However, earnings per share came in lower than anticipated at $3.56.
Still, the retailer is holding to its 2025 forecast of 2.8% sales growth and a 2% dip in adjusted profit. Analysts believe its no-hike policy could help Home Depot grow its market share as others raise prices.
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