US retail giant Home Depot has stated it won’t raise prices broadly due to new tariffs imposed by President Trump. However, some product options may disappear from store shelves if extra import costs make them not viable.
The company’s merchandising chief, Billy Bastek, said on a call with investors that there will be some individual price increases and product changes as a result of the tariffs. “There are items we have that could potentially be impacted from a tariff that we won’t have going forward,” he stated.
Home Depot is well-positioned in the retail market, with significant power due to its large size and domestic sourcing of over half of its products. This allows it to absorb costs better than smaller retailers. The company has also diversified its suppliers to reduce reliance on foreign countries for imports.
Despite other companies planning price increases, Home Depot aims to maintain steady prices and potentially gain share from competitors. The company hopes the low prices will attract customers away from other retailers.
The impact of tariffs is being felt differently across various industries. Walmart, which has already raised prices due to tariffs, was criticized by President Trump for passing on costs to customers. Amazon faced criticism after news reports suggested it might charge new tariff costs on its marketplace.
Home Depot’s home improvement market remains resilient, with sales rising 0.2% and shopping transactions up 2.1% in the latest quarter. The company credits this to homeowners undertaking smaller projects due to high mortgage rates and a slowing US housing market.
The US economy is also showing signs of resilience, despite recession concerns. Strong employment levels, steady inflation, and lower gas prices have contributed to this recovery.
Source: https://www.npr.org/2025/05/20/nx-s1-5404662/home-depot-tariffs-prices-product-lines