One week after Walmart announced that it would begin raising prices on products sold in U.S. stores due to President Donald Trump’s tariffs on China, big box rival Home Depot announced that it would not be increasing prices. CFO Richard McPhail told CNBC the store intends to “maintain our current pricing levels across our portfolio.“
While the Trump administration has made a deal with China to cut tariffs on Chinese imports from 145% to 30% as a 90-day negotiating period takes place, Walmart imports about one-third of its products overall, with China and Mexico being its two largest importers.
How does Home Depot intend to keep prices down?
By contrast, Home Depot reports that more than half of the merchandise it sells is produced in the United States. McPhail said Home Depot and its suppliers have recently diversified the source of their imports, including reducing products that come in from China. He says that by next year, no country outside the U.S. will total more than 10% of the company’s goods.
Walmart CFO John David Rainey previously told CNBC that the tariffs are still too high, so the big box store is increasing prices.
“It’s more than any supplier can absorb, and so I’m concerned that the consumer is going to start seeing higher prices,” Rainey said. “You’ll begin to see that, likely towards the tail end of this month and then certainly much more in June. “
How are Home Depot’s sales?
Home Depot expects sales to grow by 2.8% in 2025. But that number factors in the tariffs on China remaining at 30% and across-the-board tariffs on other countries staying at 10%.
For the first quarter of 2025, Home Depot had anticipated bringing in $39.31 billion in revenue. It took in a slightly higher amount, $39.86 billion.
As spring and home improvement projects kick into high gear, Home Depot’s McPhail said sales increased from March 2024 to March 2025 by 1.3% and rose from April to April by 1.8%.
What is the outlook going forward?
McPhail told CNBC that the company had a good April and expects that trend to continue into the summer.
“We clawed our way back through the remainder of the quarter and had a great April, and we’ve seen the level of customer engagement that we saw in April continue into the first few weeks of May,” he told CNBC.
Adding to its portfolio, Home Depot purchased SRS Distribution in 2024 for $18 billion. The Texas-based company sells supplies to roofing companies, pool installers and landscapers.
Home Depot appeals to affluent American consumers, with an estimated 80% being homeowners who have reaped the benefits of increased property values, according to the company. In addition, contractors who buy from Home Depot often work on home projects such as roofing, electrical work and kitchen remodeling.
What about Lowe’s?
As for rival Lowe’s, Yahoo Finance reports that in December, CFO Brandon Sink told shareholders on an earnings call that 40% of its products sold come from overseas and that tariffs would likely add to production costs.
Lowe’s first quarter earnings figures and revenue outlook are due on Wednesday, May 21.
contributed to this report.
