Home Depot warns it may raise prices because of Trumps tariffs

Home Depot warned that it may raise prices on select merchandise in order to offset the cost of the Trump administration’s tariffs on imports — marking a reversal from the retailer’s earlier stance against trade-related pricing adjustments.The nation’s largest home improvement chain said during an earnings call on Tuesday that pricing changes would affect specific product categories, though executives characterized the adjustments as measured rather than sweeping.Richard McPhail, Home Depot’s chief financial officer, told the Wall Street Journal that certain items would see price modifications in response to import duties.“There will be some modest price movement for some categories,” McPhail told the Journal, signaling the company’s evolving approach to managing tariff pressures.The likely price hikes come as customers pull back on home renovations.Economic headwinds and elevated interest rates have prompted many homeowners to delay substantial remodeling projects, opting instead for minor improvements that don’t require financing, according to Home Depot executives.The Atlanta-based company reported that roughly half its merchandise originates from domestic suppliers, shielding those products from international trade duties — though imported goods remain vulnerable to cost increases.The retailer’s latest quarterly performance reflected mixed consumer behavior patterns.While comparable store sales edged up 1%, the number of customer visits declined by 0.9%.This divergence suggests shoppers are spending more per trip while making fewer overall purchases.Wall Street responded favorably to the earnings report, pushing Home Depot shares higher by more than 4% during Tuesday trading.Home Depot CEO Ted Decker said mortgage rate relief could spur renewed customer activity.“Some relief on mortgage rates in particular could help,” Decker told analysts during the earnings call on Tuesday.The residential real estate market’s persistent challenges ...