meta_pixel
Tapesearch Logo
Log in
Marketplace All-in-One

Which companies can "eat" Trump's tariffs?

Marketplace All-in-One

Marketplace

News, Business

4.81.3K Ratings

🗓️ 20 May 2025

⏱️ 26 minutes

🧾️ Download transcript

Summary

Over the weekend, President Trump told retailers to “eat the tariffs” after Walmart warned of price hikes spurred by the trade war. Across the country, retailers are making tough calls when it comes to tariff costs. So why is Home Depot in a better position to keep prices stable than Walmart? Also in this episode: stablecoins inch closer to bank distribution, turbine backlog slows energy sector growth and we get some advice on what to buy before more tariffs kick in.


Every story has an economic angle. Want some in your inbox? Subscribe to our daily or weekly newsletter.


Marketplace is more than a radio show. Check out our original reporting and financial literacy content at marketplace.org and consider making an investment in our future.



 

Transcript

Click on a timestamp to play from that location

0:00.0

In which the theme of the program, broadly speaking, is pricing power.

0:07.1

From American public media, this is Marketplace.

0:16.4

In Los Angeles, I'm Kyle Rizdahl Tuesday today. May the 20th, good as always,

0:23.7

stab you along, everybody. We seem to have entered the, are you corporate America, or are you not going to raise your prices as tariffs start to bite in this economy?

0:33.7

You'll recall the other day, Walmart said flat out on its earnings call that it is going to raise prices by the end of this month, thanks, the company said directly to President Trump's tariffs.

0:44.3

The president then, as you have heard, said on his social account and through his Treasury Secretary that Walmart ought to eat the cost of the tariffs.

0:52.1

That's President's word.

0:53.8

Home Depot, though, on Id's call this morning,

0:56.0

said it's not planning broad price hikes. Because as it turns out, and as Marketplaces of

1:01.9

Anna Peters reports, are you or are you not going to raise prices, kind of hinges on what kind of

1:07.4

business you are in. At a time when consumers are bracing for higher prices, companies can give themselves an edge

1:15.2

by promising to buck that trend.

1:17.6

Terry Esper, a professor of logistics at the Ohio State University, says Home Depot is in a

1:23.3

good position.

1:23.9

I think they're able to weather this trade scenario maybe a bit differently than

1:29.6

a company like a Walmart. And only partly because of the strong domestic supply chain, Home Depot

1:35.2

touted on its earnings call. Esper says home improvement retailers deal in higher margin goods,

1:41.5

things like garden supplies and certain construction materials.

1:45.2

Some of the specialty products that typically have a bit more of a higher markup.

1:51.4

Leaving a bit more room to absorb higher wholesale costs. Plus, Esper says these retailers

1:56.9

aren't just catering to households. Home Depot also has a pretty big customer base that are

2:02.4

contractors. Professionals who buy in high volumes and are less sensitive than DIYers to economic

...

Transcript will be available on the free plan in 1 days. Upgrade to see the full transcript now.

Disclaimer: The podcast and artwork embedded on this page are from Marketplace, and are the property of its owner and not affiliated with or endorsed by Tapesearch.

Generated transcripts are the property of Marketplace and are distributed freely under the Fair Use doctrine. Transcripts generated by Tapesearch are not guaranteed to be accurate.

Copyright © Tapesearch 2025.