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One week after Walmart announced that it would raise prices due to new tariffs on Chinese goods
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big box rival Home Depot says it will not follow suit. CFO Richard McPhail told CNBC the company intends to maintain its current pricing level
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While the Trump administration has made a deal with China, cutting tariffs from 145 percent to 30 percent during a 90-day negotiation window
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retailers like Walmart are feeling the pressure. Walmart imports roughly one-third of its goods, primarily from China and Mexico
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By contrast, Home Depot says more than half its merchandise is made in the United States
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And by next year, the company expects no single foreign country will account for more than 10% of its imported goods
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Despite trade pressures, Home Depot expects sales to grow by 2.8% this year
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a forecast that assumes tariffs stay at 30% for China and 10% elsewhere
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For the first quarter of 2025, Home Depot brought in nearly $40 billion in revenue, which was slightly more than expected
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And as spring and home improvement projects kick into high gear, sales rose 1.3 percent year over year in March and 1.8 percent in April
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That momentum, McPhail says, has continued into May. An estimated 80 percent of Home Depot customers are homeowners who have reaped the benefits of increased property values, according to the company
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In addition, contractors who buy from Home Depot are often working on home projects such as roofing, electrical work and kitchen remodeling
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As for rival Lowe's, Yahoo Finance reports that in December, CFO Brandon Sink told shareholders on an earnings call that 40 percent of its products sold come from overseas and that tariffs would likely add to production costs
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Lowe's first quarter earnings figures and revenue outlook are due on Wednesday
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