In May, Home Depot said it wasn’t planning to raise prices in response to tariffs. But this week, that changed.

Until now, America’s largest home improvement retailer has limited what it has said about the impact of tariffs on its prices. But after reporting quarterly results Tuesday, CFO Richard McPhail said Home Depot would have to implement some price increases as a result of the Trump administration’s taxes on imports.

The retailer might see some “modest” price movement as it continues to navigate tepid home improvement demand alongside tariff and interest rate uncertainty, executives said.

In Q1, Home Depot experienced solid demand for smaller projects and seasonal activities; however, high interest rates deterred many consumers

Home Depot reported weaker-than-expected quarterly earnings and sales, signaling there still hasn’t been a full-on rebound for home improvement. Yet the stock was moving higher on Tuesday as investors shrugged off the second quarter and looked toward the shares’ next catalyst: interest-rate cuts.