Unlike Walmart, Home Depot Won’t Raise Prices Despite Tariff Strain/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ Home Depot is bucking the trend of tariff-driven price hikes, pledging to keep prices steady. Unlike Walmart and others, the retailer says supplier relationships and sourcing diversity will help absorb rising costs. Trump applauds price discipline while blasting rivals for inflationary moves.
Home Depot Tariff Strategy Quick Looks
- Home Depot won’t raise prices despite Trump’s new tariffs.
- Rivals like Walmart, Amazon, and Stanley Black & Decker are hiking prices.
- Home Depot CFO credits scale, supplier deals, and U.S.-based sourcing.
- Over 50% of its products come from American suppliers.
- Company has reduced reliance on China over recent years.
- Tariffs are raising costs across retail, especially on Chinese imports.
- Lumber, a key category, may soon face higher Canadian tariffs.
- Trump criticized Walmart and Amazon for passing tariff costs to consumers.
- Consumer sentiment remains weak as economic fears linger.
- Home Depot saw only a 0.2% increase in U.S. same-store sales.
Deep Look: Home Depot Holds Prices Steady as Rivals Raise Costs Over Tariffs
NEW YORK, May 20, 2025 — As a wave of U.S. retailers raise prices in response to new tariffs imposed by President Donald Trump, Home Depot is standing out by vowing to keep prices stable, shielding consumers from the immediate impact of the escalating trade war.
In a CNBC interview, Chief Financial Officer Richard McPhail said the home improvement giant intends to “generally maintain our current pricing levels across our portfolio,” citing strong supply chain partnerships, scale, and productivity gains.
A Strategic Approach to Sourcing and Supply Chains
Home Depot’s ability to resist price increases is partly due to its diversified sourcing model. More than half of its merchandise is produced in the U.S., and the company has steadily reduced its dependence on China over recent years. That has helped cushion the impact of the 10% universal tariffs and additional 30% duties on Chinese goods.
“We’ve worked hard to localize our supply chain and diversify where we source our goods,” McPhail said. “That discipline is now paying off.”
Tariff Headwinds for Retail
The tariffs—part of Trump’s ongoing global trade standoff—have rattled the broader retail sector. Major companies like Walmart and Stanley Black & Decker have announced price hikes in response to higher import costs.
Walmart CEO Doug McMillon recently warned that “even at reduced levels, the tariffs are too high to absorb,” and that customers would see higher prices on select goods. Stanley Black & Decker, which owns brands like Dewalt and Craftsman, already raised prices this spring and plans further increases later this year.
Home Depot Remains Cautious But Steady
Despite its firm stance on pricing, Home Depot is not immune to the economic pressures. The company reported sluggish earnings this quarter, with just a 0.2% increase in U.S. same-store sales, as high mortgage rates and economic uncertainty kept customers from starting major renovations.
Consumer confidence remains weak, with inflation fears and trade volatility dampening discretionary spending.
One looming concern: lumber tariffs. Softwood lumber is a major product category for Home Depot, and while current tariffs have not yet affected pricing, that could change. Roughly 30% of U.S. softwood lumber is imported, mostly from Canada, where tariff hikes are expected soon.
Trump Targets Walmart and Amazon, Praises Price Holdouts
President Trump has taken a vocal approach to tariff enforcement, blasting companies like Walmart, Amazon, and Mattel for announcing price increases. Over the weekend, Trump took aim at Walmart specifically:
“Walmart should STOP trying to blame tariffs… Between Walmart and China, they should EAT THE TARIFFS,” he posted on Truth Social.
He added, “I’ll be watching, and so will your customers!!!”
In contrast, Trump has not criticized Home Depot, suggesting the company’s price-holding strategy aligns with the administration’s messaging on consumer protection during the tariff expansion.
Balancing Strategy and Sentiment
Home Depot’s disciplined approach has earned praise from Wall Street. Analysts say its ability to leverage scale while avoiding major price hikes is a competitive advantage in an uncertain environment. Still, the company will need to maintain this balance as consumer sentiment weakens and housing activity remains soft.
Retail analyst Neil Saunders said, “Home Depot’s pricing strategy might win consumer loyalty, but maintaining margin under rising costs will be a long-term challenge.”
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