Home Depot warned it may raise prices on select merchandise due to the impact of President Donald Trump’s tariffs on imports. The company will make measured price adjustments in response to import duties, affecting specific product categories.
The nation’s largest home improvement chain reported that roughly half its merchandise comes from domestic suppliers, shielding those products from international trade duties. However, imported goods remain vulnerable to cost increases. This move marks a reversal of the retailer’s earlier stance against trade-related pricing adjustments.
Home Depot executives cited economic headwinds and elevated interest rates as reasons for reduced consumer spending on home renovations. Many homeowners are delaying substantial remodeling projects due to these factors. Instead, customers are opting for minor improvements that don’t require financing.
The company reported a 1% increase in comparable store sales but saw a 0.9% decline in customer visits. This suggests shoppers are spending more per trip while making fewer overall purchases.
Home Depot CEO Ted Decker expressed optimism about mortgage rate relief spurring renewed customer activity. The residential real estate market’s persistent challenges have weighed on the company’s performance in recent periods. Elevated property values and economic uncertainty have reduced demand for renovations, and costly financing has discouraged homeowners from pursuing major improvement projects.
To counter softening do-it-yourself demand, Home Depot is focusing on capturing professional contractor business through expanded bulk purchasing options, customized ordering capabilities, and enhanced support services. The company recently agreed to purchase building materials supplier GMS for $4.3 billion, which it expects to contribute positively to earnings within twelve months of completion.
Home Depot’s spokesperson noted that “more than 50% of our products are sourced domestically and not subject to tariffs.” The company will make modest price adjustments in response to import duties, but emphasized its focus on protecting the overall cost of a project while maintaining value.
Source: https://nypost.com/2025/08/19/business/home-depot-warns-it-may-raise-prices-because-of-trumps-tariffs