Here’s How Tariffs Will Affect Prices at Home Depot | Entrepreneur

Multiple Home Depot executives said on Tuesday that the company isn’t planning to raise prices due to tariffs.

“More than 50% of our purchases are sourced in the United States,” CEO Ted Decker said during the company’s quarterly earnings call on Tuesday, per Axios. “Over the last several years, we have worked diligently with our vendors to further diversify our global supply chain.”

Related: Here’s How Tariffs Will Affect Costco’s Prices, According to the Company’s CEO

Home Depot’s Chief Financial Officer Richard McPhail told CNBC that the home improvement company will be able to maintain its current price levels due to these connections.

“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,” McPhail said.

More than half of what the company sells comes from the U.S., he added.

^{Ted Decker attends the 2023 Beloved Benefit presented by The Same House at Georgia World Congress Center on August 24, 2023, in Atlanta, Georgia. Getty Images.}

Costco is also working with its vendors and suppliers to keep prices low, the company’s CEO, Ron Vachris, said on its second-quarter earnings call in March.

“[It is] difficult to predict the impact of tariffs, but our team remains agile, and our goal will be to minimize the impact of related cost increases to our members,” Vachris said at the time. There has not yet been an update.

However, Walmart said last week that the company will be raising prices over the next few months to cover costs from tariffs.

Walmart CEO Doug McMillon said on an earnings call that Walmart couldn’t “absorb” the higher costs, “given the reality of narrow retail margins” that it has due to the company’s “everyday low pricing.”

“Even at the reduced levels, the higher tariffs will result in higher prices,” McMillon said on the call.

Related: McDonald’s Is Hiring Hundreds of Thousands of Employees. Here’s Why.

Customer transactions across Home Depot’s website and stores increased 2.1% year over year in the fiscal first quarter, CNBC notes.

“We don’t see broad-based price increases for our customers at all going forward,” said Billy Bastek, Home Depot’s executive vice president of merchandising, on the call.