Major U.S. retailer reverses course on tariffs, says prices will go up

Major U.S. retailer reverses course on tariffs, says prices will go up

A major U.S. retailer that previously said tariffs wouldn’t increase prices reversed course on Tuesday, with officials saying they expect “modest” price increases for some products.

The home-improvement retailer with more than 2,300 stores across North America said prices will increase in some categories due to significantly higher tariffs than it expected in May.

“Obviously tariff rates are significantly higher today than they were when we spoke in May. So as you’d expect there’ll be some modest price movement in some categories but it won’t be broad based,” said Billy Bastek, executive vice president of merchandising at Home Depot.

He added that the store is working to keep project pricing down as homeowners have deferred larger projects, but continue to do small ones.

“Our customers tend to shop for the entire project and you think about a small flooring project: Tile, the grout, bathtub and vanity and a bath project. And so we’re laser focused on protecting the cost of the entire project. And so listen, our goal is to maintain the best value for our customers.”

Bastek said about half of Home Depot products are made in the U.S. and not subject to tariffs.

Home Depot boss Ted Decker said lower federal interest rates would likely help.

“The consumers, both pro and consumer, engaged broadly across the business, granted in smaller projects. We still haven’t seen the recovery in much larger discretionary projects,” Decker said during the company’s second-quarter earnings call on Tuesday.

Last month, the Federal Reserve’s latest anecdotal “beige book” survey found that businesses across the country reported passing the cost of tariffs on to U.S. consumers, something President Donald Trump warned them not to do.

“Many firms passed on at least a portion of cost increases to consumers through price hikes or surcharges, although some held off raising prices because of customers’ growing price sensitivity, resulting in compressed profit margins,” according to the Fed report.

Those higher prices could become more visible later this year, according to the Fed report.

Trump has told businesses that he doesn’t want them to raise prices. He wants businesses to absorb the loss without passing on the higher prices to consumers.

Shortly after Walmart said it would have to raise prices throughout its stores in May, Trump told the world’s largest retailer to “eat it.”

Economists, businesses and some publicly traded companies have warned that tariffs could raise prices on a wide range of consumer products.

Trump has said he wants to use tariffs to restore manufacturing jobs lost to lower-wage countries in decades past, shift the tax burden away from U.S. families, and pay down the national debt.

A tariff is a tax on imported goods paid by the person or company that imports the goods. The importer can absorb the cost of the tariffs or try to pass the cost on to consumers through higher prices.

Events

26 Aug
28 Aug
28 Aug
29 Aug
30 Aug
30 Aug 25
30 Aug
30 Aug 25

Leave a Comment





Latest News Stories

Meeting-Briefs

Will County Legislative Committee July 1 Meeting Briefs

Federal Budget Impact: Will County could face significant funding challenges if federal budget reconciliation measures reduce Medicaid and SNAP benefits. The county health department and social services rely heavily on...
Will-County-Finance-Committee-Meeting-July-1-2025

County Moves Forward with $200.8 Million Bond Refinancing Plan

Will County Finance Committee members on July 1 approved moving forward with a comprehensive bond refinancing ordinance that could save taxpayers more than $716,000 over the life of the bonds...
Will-County-Public-Works-Transportation-Committee-Meeting-July-1-2025

Access Will County Dial-a-Ride Program Sees Record Growth, Eyes Expansion

Will County's dial-a-ride transportation service for seniors and disabled residents reached record ridership levels while officials plan major expansion to cover all county townships. The Access Will County program served...
Will-County-Capital-Improvements-IT-Committee-Meeting-July-1-2025

Will County to Launch New Public Meeting Agenda System in August Amidst Data Conversion Concerns

Will County is set to launch its new public meeting agenda and records software, Granicus “OneMeeting,” in August, but the transition will see over a decade of historical records converted...
Will-County-Planning-and-Zoning-Commission-Meeting-July-1-2025

Green Garden Township Poised for First Major Subdivision in Years After Rezoning

The Will County Planning and Zoning Commission has recommended a rezoning that could pave the way for the first major residential subdivision in Green Garden Township in nearly two decades....
Will-County-Finance-Committee-Meeting-July-1-2025

County RNG Facility Shows Strong Performance Despite Solar Challenges

Will County's Renewable Natural Gas facility is exceeding production targets while officials explore options to reduce substantial electricity costs that currently impact profitability. Project manager Greg Komperda told Finance Committee...
Meeting-Briefs

PZC Briefs: Solar Farm in Crete, Post-Fire Permit for Troy Business, and More

The Will County Planning and Zoning Commission handled several other cases during its July 1 meeting, including a new solar farm, a temporary permit for a fire-damaged business, and routine...
Meeting-Briefs

In Brief: Capital & IT News

Here are other highlights from the Will County Capital Improvements & IT Committee meeting on Tuesday. Successful Fire Drill at County BuildingThe Will County Office Building held its first full...
Meeting-Briefs

Will County Finance Committee July 1 Meeting Briefs

Bond Refinancing Advances: Finance Committee approved an ordinance authorizing up to $200.8 million in bond refinancing that could save taxpayers more than $716,000. The measure moves to the full County...
Meeting-Briefs

Will County Public Works Committee Juliy 1 Meeting Briefs

ROAD CONTRACTS APPROVED Austin Tyler Construction Contract: The committee approved a $691,544 contract with Austin Tyler Construction for resurfacing River Road from East Frontage Road to Prairie Creek Bridge and...
About Us Website Header - 1

New Lenox Library Board Seats New Trustees, Reorganizes After Election

NEW LENOX – The New Lenox Public Library District Board of Trustees officially seated its newly elected members and reorganized its leadership and committee assignments for the new term at...
New-Lenox-School-122.3

New Lenox D122 Board Approves Nearly $300,000 for Summer Maintenance Projects

The New Lenox School District 122 Board of Education has approved a comprehensive list of 56 maintenance and capital improvement projects to be completed over the summer, allocating a total...
new-lenox-fire-district-stations.3

New Lenox Fire District to Launch Comfort Dog Program for First Responders, Community

NEW LENOX – The New Lenox Fire Protection District is adding a four-legged member to its team after the Board of Trustees unanimously approved the creation of a new comfort...
new-lenox-library.2-1

Library’s ‘Studio’ Draws Record Crowds with New Tech and Creative Programs

NEW LENOX – The New Lenox Public Library’s creative hub, The Studio, is experiencing a surge in popularity, shattering attendance records and successfully launching new technology-driven programs, according to a...
New-Lenox-School-122.5

D122 to Spend $24,950 on Professional Enrollment Forecast

New Lenox School District 122 will hire an outside firm to conduct a comprehensive, 10-year enrollment forecast at an estimated cost of $24,950. The Board of Education approved an agreement...