Home Depot says it’s keeping prices steady as Trump dismisses price hikes
Home Depot has announced that it will not be raising prices in response to tariffs, in contrast to Walmart’s warning of impending price hikes. The home improvement retailer is working closely with suppliers to maintain current pricing levels and is shifting production away from China to avoid high tariffs, which currently stand at 30% on most Chinese goods.
Richard McPhail, CFO of Home Depot, stated in an interview with CNBC, “Because of our scale, strong supplier partnerships, and ongoing focus on productivity, we plan to keep our prices stable across our product range.” More than half of Home Depot’s products are made in the United States, and the company aims to further reduce its reliance on Chinese manufacturing. McPhail mentioned that within a year, no single country outside of the U.S. will account for more than 10% of Home Depot’s purchases.
This commitment to maintaining prices comes in the wake of Walmart’s recent announcement that even lower tariffs on Chinese goods would lead to price increases for consumers. Walmart CEO Doug McMillon acknowledged the impact of tariffs on prices during the company’s first quarter earnings call on May 8, stating, “Even with reduced tariffs, prices will still rise.” President Trump criticized Walmart for blaming tariffs for price hikes and urged the company to absorb the costs instead of passing them on to customers.
It is a widely recognized fact that businesses often pass on the increased costs of tariffs to consumers. While economists argue that tariffs primarily affect U.S. companies and consumers, the White House maintains that foreign countries should bear the burden of tariffs. White House press secretary Karoline Leavitt reiterated this stance during a recent briefing, stating that foreign countries should absorb the tariffs imposed by the U.S.
Despite the ongoing debate on tariffs and their impact on prices, Home Depot’s decision to maintain pricing stability showcases the company’s efforts to navigate the challenging trade environment while prioritizing consumer affordability.
