Three months after stating the company had no plans to increase prices due to tariffs, Home Depot has backtracked. On Monday, the national home improvement retail chain confirmed to the Wall Street Journal that it plans some “modest price movement” as the tariffs increase.
The move comes as tariffs implemented by President Donald Trump continue to increase costs for businesses. In an interview with WSJ, Home Depot CFO Richard McPhail said the rising tariff rates are a direct cause of the price increases.
“For some imported goods, tariff rates are significantly higher today than they were at this time last quarter,” McPhail said.
During an earnings call in May, Billy Bastek, Home Depot’s merchandising chief, hinted that some items could disappear from shelves, but was clear that price jumps were not expected.
“We don’t see broad-based price increases for our customers at all going forward,” Bastek said.
While confirming prices will increase, McPhail said the jumps would not be across the board and would be noticeable in some categories. Home Depot has previously said that slightly less than half of its inventory comes from outside the U.S.
The company is also actively working to ensure no more than 10% of its products come from a single foreign nation.
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