Home Depot announced Tuesday that it will increase prices on certain products as U.S. tariffs on imported goods push costs higher. The move marks a shift for the nation’s largest home improvement retailer, which had previously been cautious about addressing how trade policy would affect its pricing.
Company executives said the adjustments will not be across the board but will target specific categories where tariffs have had the biggest impact. Tariff rates on some goods have risen sharply compared with last quarter, forcing the retailer to pass along some of the costs.
Roughly half of Home Depot’s inventory comes from outside the United States, and the company has been working to diversify its supply chain to avoid heavy reliance on any single country. That effort, however, has not been enough to fully insulate it from the rising costs of imported materials.
The announcement came as Home Depot reported its latest quarterly earnings. Sales rose 5% compared with the same period last year, but net income dipped 0.2% due to higher operating expenses. The company projected that full-year earnings per share could fall by 2% as consumers continue to hold back on big-ticket remodeling projects.
High mortgage rates—hovering just below 7%—and broader economic uncertainty are discouraging many homeowners from starting large renovations, executives said. While day-to-day demand for smaller projects remains steady, contractors and homeowners alike report that larger remodels are being deferred.
Source: CNN