Home Depot said Tuesday that it doesn’t plan to raise prices because of tariffs, defying a broader trend in the retail industry.
“We intend to generally maintain pricing across our portfolio. We’ll continue to use the portfolio approach that we’ve talked a lot about in the past, but we don’t see broad-based price increases for our customers at all going forward,” William Bastek, executive vice president of merchandising, told analysts during an earnings call Tuesday.
Bastek said the company has been working with its suppliers for years to diversify its supply chains across several countries.
COSTCO, WALMART ARE APPEALING TO WEALTHY SHOPPERS
“We’ve got tremendous flexibility here. I can’t emphasize that enough. We’re already taking action, moving quickly. And we anticipate, 12 months from now, that no single country outside of the U.S. will actually represent more than 10% of our purchases,” Bastek added.
It’s an about-face from other heavy hitters in the industry that have consistently warned that President Donald Trump’s tariffs will result in price increases that consumers will see at the register.
A lot of major retailers have exposure to China, which has been a major target of Trump’s trade war.
The U.S. said it would cut the “de minimis” tariff for low-value shipments from China to as low as 30%, but tariffs for direct-to-consumer postal shipments for items valued at up to $800 will be reduced from 120% to 54%, according to Reuters.
Walmart’s top boss warned last week about possible price hikes given the uncertainty in the tariff environment, even after having a “productive” meeting with Trump to discuss ongoing trade negotiations and the impact of tariffs on imported goods.
CHINESE IMPORTS TO US PLUMMET TO LOWEST LEVELS SINCE PANDEMIC AMID TRUMP TARIFFS
“We will do our best to keep our prices as low as possible but, given the magnitude of the tariffs, even at the reduced levels announced this week, we aren’t able to absorb all the pressure given the reality of narrow retail margins,” Walmart CEO Doug McMillon said in a statement as the retailer reported its first-quarter results last week.
Trump lambasted the company in a post on Truth Social, saying it should “eat the tariffs.”
After speaking with McMillon, Treasury Secretary Scott Bessent said on Sunday that the company agreed to absorb some of the cost of tariffs.
“So Walmart will be absorbing some of the tariffs,” Bessent said. “Some may get passed on to consumers.”
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| HD | THE HOME DEPOT INC. | 375.65 | -3.53 | -0.93% |
| WMT.TGT | NO DATA AVAILABLE | – | – | – |
| BBY | BEST BUY CO. INC. | 71.60 | -2.20 | -2.98% |
The chief executives of Target and Best Buy also warned earlier this year that the tariffs against key trading partners will put pressure on profits and could drive up prices for consumers.
Read the full article here
