Home Depot has announced that it will not raise prices in response to tariffs imposed during President Donald Trump’s ongoing trade war—a move that contrasts sharply with many of its retail competitors, including Walmart.
Chief Financial Officer Richard McPhail told CNBC that the home improvement giant will maintain its current pricing strategy, thanks to its large scale, strong supplier relationships, and continued improvements in efficiency.
“We intend to generally maintain our current pricing levels across our portfolio,” McPhail said.
Home Depot has also reduced its dependency on Chinese imports by diversifying its supply chain. Over half of its merchandise now comes from the United States. Despite these efforts, the company has still felt the impact of the trade war. Concerns about inflation and a weakening economy have dampened consumer confidence, contributing to slower sales and weaker earnings. Sales at U.S. stores open for at least a year rose just 0.2% last quarter, as fewer consumers undertook major home renovation projects.
While many retailers are increasing prices to cover the cost of tariffs—some as high as 30% on Chinese goods—Home Depot is choosing a different path. For example, Stanley Black & Decker has already raised prices once and plans a second increase. Walmart, meanwhile, said it has no choice but to raise prices due to the tariffs’ financial strain on already tight retail margins.
Walmart CEO Doug McMillon stated, “We will do our best to keep prices low. But given the magnitude of the tariffs, we can’t absorb all the costs.”
President Trump has taken to publicly criticizing companies like Walmart, Amazon, and Mattel for raising prices, insisting they should absorb the tariffs instead of passing them onto customers.
“Walmart should STOP trying to blame tariffs,” Trump tweeted. “Between Walmart and China they should… ‘EAT THE TARIFFS.’ I’ll be watching, and so will your customers!!!”
Home Depot, for now, is choosing to sidestep that controversy by keeping its prices stable—even as the pressure mounts and uncertainties around future tariffs, such as those on Canadian lumber, loom ahead.
