Home Depot Holds Prices as Walmart Faces Heat From Trump Over Tariff Warnings

Home Depot has announced it will not raise prices on its products, even as steep tariffs on Chinese imports put pressure on the retail industry. The move comes after former President Donald Trump publicly criticized Walmart for warning customers that prices might increase due to the added import costs.

Richard McPhail, Chief Financial Officer of Home Depot, told CNBC the company is taking several steps to keep prices steady. “Our size, our close relationships with suppliers, and ongoing improvements in our operations allow us to hold prices where they are,” McPhail said.

The retailer has begun shifting production out of China to avoid the 30% tariffs now affecting a wide range of goods. Over half of Home Depot’s inventory is already made in the United States, and the company says that by next year, no single foreign country will account for more than 10% of its product sourcing.

Walmart, on the other hand, recently told investors that even lower tariff levels could force price increases. CEO Doug McMillon said during a May 8 earnings call that the company is trying to manage rising costs but acknowledged that shoppers may feel the impact.

Trump responded by accusing Walmart of using tariffs as an excuse. In a Truth Social post, he said, “Walmart made BILLIONS OF DOLLARS last year. Between Walmart and China they should ‘EAT THE TARIFFS,’ and not charge valued customers ANYTHING.”

Economists generally agree that tariffs tend to increase prices for American businesses and consumers, even though the political narrative often suggests otherwise. While companies can absorb some of the cost, it typically gets passed on in the form of higher prices — unless strategic changes are made.

That’s where Home Depot’s approach stands out. By proactively relocating its manufacturing and negotiating with suppliers, the retailer is shielding customers from those cost increases. This is especially significant for regular DIY shoppers, small contractors, and homeowners budgeting for renovation projects.

Retail analysts say Home Depot’s decision could give it a competitive edge over rivals that are struggling to maintain price consistency. With inflation still weighing on consumer spending, price stability is becoming a key factor in where people choose to shop.

By shifting production away from China and strengthening ties with domestic suppliers, Home Depot is tackling tariffs head-on rather than passing costs to customers — a move that not only sets it apart from competitors like Walmart but also reinforces its reputation for price consistency during economic pressure.

Also Read: Trump Tells Walmart to Absorb Tariff Costs, Not Raise Prices