Retailers like Walmart, Target, and Lowe’s are battling two battles simultaneously – dealing with the cost of President Trump’s sweeping tariffs while avoiding public backlash from the White House or alienating customers. In a move to downplay tariff-related price hikes, Target lowered its financial forecast for the year. Similar efforts were seen in Home Depot’s statement that it won’t raise prices broadly due to tariffs.
However, Walmart, which warned of potential price increases as early as this month, remains under pressure from the White House after President Trump suggested it “eat the tariffs.” The retailer is absorbing some tariff costs with its suppliers but cannot do so with the full amount. Amazon, which faced criticism for potentially displaying new tariffs on its low-cost marketplace, also seems to be navigating the challenge.
Home Depot and Lowe’s are focusing on staying price-competitive while minimizing impacts on customers. Both companies emphasized their commitment to competing on price without raising prices broadly due to tariffs. Suppliers like Stanley Black & Decker have already raised prices in response to new tariffs, adding pressure on retailers to absorb costs or pass them on.
Source: https://www.npr.org/2025/05/21/nx-s1-5405407/trump-tariff-target-home-depot-walmart