Fighting Back: How Home Depot Plans to Beat Tariffs Without Punishing Customers

In a sea of rising prices triggered by fresh US import tariffs, one retail giant is making headlines for not following the trend. While major American brands brace consumers for costlier products, Home Depot has taken a bold stance: no price hikes, despite the pressure. But how exactly does the home improvement powerhouse plan to weather the storm?

Home Depot Refuses to Raise Prices Despite Tariffs

On Tuesday, 20 May 2025, Home Depot confirmed it will not be increasing its prices in response to the import tariffs imposed by President Donald Trump.

'Because of our scale, the great partnerships we have with our suppliers and productivity that we continue to drive in our business, we intend to generally maintain our current pricing levels across our portfolio,' Chief Financial Officer Richard McPhail told CNBC.

This decision comes despite more than half of Home Depot's sales being domestic—a market directly hit by the tariff hikes. Still, McPhail remains confident in the company's ability to absorb the pressure, citing ongoing efforts to diversify its supply chain away from China.

Home Depot's first-quarter revenue slightly beat expectations, hitting $39.86 billion compared to the forecasted $39.31 billion.

Strategic Shift: Diversifying Supply Chains

McPhail explained that Home Depot has been working for years to reduce its dependence on Chinese imports. By 2026, the company aims to ensure that no single country accounts for more than 10% of its purchasing.

This strategy, combined with Home Depot's scale and supplier relationships, gives the company a level of flexibility others may lack.

'It's a great opportunity for us to take share, and it's a great opportunity for our suppliers to take share as well,' McPhail said.

Not All Products Are Safe

Despite its confident stance, Home Depot admitted that some items may still be pulled from shelves if tariff costs become unmanageable.

Executive Billy Bastek noted that while the company is not planning broad-based price hikes, certain products may be discontinued to offset the financial strain. This move comes as Home Depot continues to face challenges from a sluggish housing market and fewer consumers undertaking major renovation projects.

Over Half of US Brands Are Raising Prices

Unlike Home Depot, a majority of American businesses are choosing to pass on the tariff costs to their customers. A recent Allianz survey of 4,500 companies across the US, UK, and China revealed that 54% of American firms are increasing prices to offset the impact of Trump's tariffs.

Big names like Walmart, Nintendo, DIGGS, and Stanley Black & Decker are among those adjusting their pricing strategies.

According to the same report, 60% of businesses said they fear negative consequences from the new trade duties, while the remaining 40% remain cautiously optimistic about export growth before the year ends.