Business

Home Depot Confirms Tariff Costs Will Hit Consumers

By Jake Beardslee · August 19, 2025

Home Depot, the nation’s largest home improvement retailer, warned Tuesday that some of its prices will soon rise due to the mounting costs of tariffs. The company made the announcement after reporting its quarterly results, marking a shift from its previous reluctance to outline how tariffs would affect consumers.

Chief Financial Officer Richard McPhail told the Wall Street Journal that tariffs are already pushing up costs in certain product categories. “For some imported goods, tariff rates are significantly higher today than they were at this time last quarter,” he said. “So as you would expect, there will be modest price movement in some categories, but it won’t be broad based.” Home Depot later confirmed his comments to CNN.

Only three months ago, the company had declined to provide details about whether tariffs would lead to higher prices. At the time, executives suggested tariffs might force Home Depot to stop offering certain items but avoided addressing direct price changes.

The company noted that a little less than half of its inventory is sourced from outside the United States, leaving it exposed to higher import costs. To reduce its vulnerability, Home Depot is working to diversify its supply base so that no single foreign country supplies more than 10 percent of its goods.

While the company stressed that not all departments will be affected, customers should expect modest increases on select items. Home Depot is attempting to absorb costs where it can, but executives acknowledged that tariffs are reshaping the economics of retail, making it impossible to shield shoppers entirely.