Home Depot is standing by its commitment to maintain prices, despite the mounting pressure from tariffs and public disputes with prominent retailers like Walmart and Mattel, who are warning consumers about possible price hikes.
The company is working discreetly with suppliers to shift production away from China, encouraging vendors to offer price concessions to shield customers from the financial strains of the ongoing trade war.
“We anticipate that in a year, no single country, aside from the US, will constitute more than 10% of our purchases,” noted Chief Financial Officer Richard McFile during a conversation with the Wall Street Journal.
Unlike some rivals, such as Walmart, Home Depot has not adjusted its financial outlook for 2025. Comparable sales in the US rose by just 0.2%, but customer transactions saw a greater increase of 2.1%, totaling 394.8 million.
Although February’s weather was poor, McFile pointed out the strong real estate market and low unemployment as positive indicators.
“Homeowners still have discretionary income to invest in home improvement projects,” he remarked.
This resilience contrasts sharply with Walmart, which has recently cautioned investors that it might have to increase prices due to tariffs.
“It seems like these tariffs might not cover all the pressures facing our business,” Walmart CEO Doug McMillon commented in a recent earnings call.
His statement resulted in a swift social media reaction from Trump over the weekend.
The president justified his scrutiny on Walmart’s robust financial performance, declaring, “I’m paying attention, and so are your customers!”
White House officials echoed Trump’s viewpoint, with Executive Director Carolyn Leavit stating that foreign countries should bear these tariffs.
Treasury Secretary Scott Bescent remarked on NBC that Walmart “absorbs some of the tariffs,” downplaying McMillon’s warnings as standard procedure for companies.
“I think CEOs are obligated to present the worst-case scenarios to their stakeholders,” Leavit added.
Walmart later affirmed it would not signal any changes in its strategy moving forward.
“We’ve consistently aimed to keep prices low, but that doesn’t mean we can halt,” commented spokeswoman Molly Blakeman. “We’re doing our best to keep retail margins minimal and to maintain affordability.”
The White House’s inconsistent approach is widening beyond just Walmart.
Recently, Trump directed his attention toward Mattel, which warned that tariffs might compel them to increase prices on popular items like Barbie dolls.
In retaliation, Trump threatened to impose abrupt tariffs on Mattel’s products, asserting that he “will not sell one toy in the United States.”
He later dismissed fears of toy price inflation, suggesting, “Kids might have only two dolls instead of 30,” adding that a doll might cost a little more than usual.
Trump’s assertion that companies would bear the costs associated with tariffs marks a noticeable shift from his campaign stance in 2024, when he criticized Democratic opponent Kamala Harris for suggesting price controls on groceries, labeling her proposal as “Soviet” regulation.
Current tariffs remain in effect. The president is increasingly vocal about guiding businesses on managing their profit margins, with tariffs set at 10% on most imports and as high as 30% on certain goods from China.
“Taxes are likely the most misunderstood aspect of business,” Trump commented at a recent White House event.
“People often absorb them. Often, companies absorb them. It’s not really the consumers who end up paying.”
This post is open for comments from the White House.
