Some Stores Aren’t Planning Tariff Price Increases — but There’s a Catch
Written by
Josephine Nesbit
Edited by
Jenna Klaverweiden
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A federal court may have blocked President Donald Trump’s sweeping new tariff plan, but retailers are still bracing for impact. Several major chains, including Home Depot, say they won’t pass higher import costs on to consumers, at least not directly. Instead, they’re pulling certain products from shelves altogether. But that could still end up impacting consumers’ budgets.
Here’s a breakdown of how some retailers plan to handle tariffs and how it could impact shoppers’ wallets.
How Retailers Plan To Handle Tariffs
As a result of tariffs, many companies are driving up prices on imported goods or plan to do so soon.
Walmart, which earned a public callout from Trump, said it will raise prices on some items as a result of tariffs. In a social media post, Trump said the retail giant should “eat” the additional costs rather than pass them along to consumers.
Other retailers are treating price hikes as a last resort.
Target chairman and CEO Brian Cornell said during a conference call that the company has “many levers” to offset the impact of tariffs, emphasizing that raising prices is “the very last resort.” He said Target’s focus remains on staying price competitive and leveraging its scale and long-standing relationships to avoid passing added costs on to consumers.
On the other hand, some retailers are considering dropping some items from their shelves altogether.
As NPR reported, Home Depot isn’t planning any price increases, which could mean good news for shoppers. However, in an earnings call, Home Depot’s merchandising chief Billy Bastek warned that certain products may “just end up going away” as a result of tariff pressures. Items impacted by tariffs, he said, may no longer make sense to keep on shelves.
TJX Companies, owner of TJ Maxx, Marshalls and HomeGoods, also plans to deal with tariffs in a similar manner. If a specific product category becomes less available, the company will take advantage of different items instead.
“The good thing with our flexibility is, we will just take advantage of an adjacent category,” said CEO Ernie Herrman in a TJX Companies earnings call. “We’d have a little less inventory on that and we’ll go after the ones where we think there’s more exciting value to put out there.”
It Could Still Hurt Your Finances
While some retailers are holding the line on prices, the hidden cost for consumers may be convenience — and, ultimately, cash.
Even if price tags remain steady, the loss of product variety could also push consumers to look elsewhere. That could mean visiting multiple stores to find essentials, paying more at pricier retailers or opting for higher-cost alternatives.
Even for those who shop primarily online, reduced inventory can lead to delays, out-of-stock notices or inflated third-party seller prices. In rural areas or communities with fewer retail options, the ripple effect may be even more pronounced, especially when added transportation costs are factored in.
Editor’s note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com.
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