Home Depot is refusing to pass the cost of tariffs on to customers, choosing instead to work with suppliers and shift production out of China. Unlike Walmart, which announced price hikes, Home Depot is keeping prices steady and betting on U.S. homeowners’ continued spending power.
Key Facts:
- Home Depot is pressuring suppliers to move production out of China to avoid tariffs, according to CFO Richard McPhail.
- The company aims for no single foreign country outside the U.S. to account for more than 10% of purchases within 12 months.
- Unlike Walmart, which is raising prices due to tariffs, Home Depot is working to absorb costs and keep prices stable.
- Both companies maintained their financial forecasts for fiscal 2025 despite tariff uncertainty.
- Home Depot’s U.S. comparable sales rose 0.2%, with CFO citing poor weather as a short-term drag.
The Rest of The Story:
Home Depot is resisting the trend of raising prices in response to tariff pressures.
The company is choosing instead to collaborate with suppliers to manage costs.
This includes encouraging those suppliers to move their manufacturing operations away from China and into other countries or back to the United States.
While Walmart faced criticism from President Trump after announcing price hikes due to tariffs, Home Depot’s strategy has been to maintain price stability.
CFO Richard McPhail said the company is confident that consumer demand will remain strong, supported by high home values and stable employment.
Despite unpredictable tariffs and global supply challenges, Home Depot reaffirmed its financial forecast for fiscal 2025.
The company expects to make significant progress on diversifying its supply chain within the next year.
Home Depot won't be raising prices due to tariffs, CFO says https://t.co/VaOcgEL5Zl
— Business Insider (@BusinessInsider) May 20, 2025
Commentary:
Home Depot is doing what strong American companies should do—putting customers first by absorbing tariff-related costs and holding the line on prices.
Rather than treating tariffs as an excuse to raise prices, the retailer is using this moment to rethink and rebuild its sourcing strategy.
Encouraging suppliers to leave China is not only good for business—it’s good for national security and American jobs.
As McPhail said, no single foreign country will account for more than 10% of purchases in the near future.
That’s a smart move in a world where reliance on adversarial nations like China can have serious economic and geopolitical consequences.
This kind of leadership matters.
At a time when many companies are quick to pass burdens to consumers, Home Depot is taking responsibility.
They’re leveraging their influence with suppliers to create positive change, both economically and strategically.
Moreover, this decision sends a signal to policymakers and competitors: it is possible to support American manufacturing and maintain strong business fundamentals.
If more large retailers followed this model, we could see a meaningful revival in domestic industry.
By keeping their forecast steady while others flinch, Home Depot also signals confidence in the American consumer.
With homeowners continuing to invest in their properties, the company is betting that solid fundamentals will outweigh short-term market fears.
This approach doesn’t just make sense—it sets a new standard.
And it’s one we should hope more businesses adopt: putting the customer and the country first.
The Bottom Line:
Home Depot is refusing to shift the burden of tariffs onto customers, choosing instead to absorb costs and move supply chains out of China.
Their strategy shows both financial discipline and a long-term commitment to American sourcing.
It’s a model that serves customers well, strengthens national economic interests, and sends a clear message: businesses don’t have to bow to global pressures—they can lead.
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