Home Depot has become the latest major US company to warn customers that it may have to raise prices in response to President Donald Trump's tariff policy. The home improvement retailer, based in Atlanta, Georgia, had previously been reluctant to comment on the impact of the Republican’s trade strategy.
On Tuesday, chief financial officer Richard McPhail acknowledged that the company might need to adjust prices to mitigate the effects of tariffs on imported goods. ‘For some imported goods, tariff rates are significantly higher today than they were at this time last quarter,’ McPhail told The Wall Street Journal. ‘So as you would expect, there will be modest price movement in some categories, but it won’t be broad-based.’
Just under half of Home Depot’s stock is imported from overseas, according to CNN. The company has previously indicated it would diversify its supply chain to ensure no single foreign country accounts for more than 10 percent of its goods, as a hedge against overexposure to trade disruptions.
Home Depot’s performance is often seen as a bellwether for the US housing market. Its second-quarter sales growth of 1 percent fell short of analysts’ expectations of 1.5 percent, the company reported in its latest earnings call. Customer transactions declined by 0.9 percent, though the average transaction value rose 1.2 percent. Home Depot maintained its full-year forecasts despite anticipated headwinds.
The company also found itself in a separate conflict this week, asking the Republican Party of Florida to remove a line of deportation-themed merchandise from its online store that used Home Depot’s branding without authorisation. ‘We don’t allow any organisation to use our branding or logo for their commercial purposes,’ said Sarah McDonald, director of public affairs.
