In 1977,[Eric Smidt and his father, Allan Smidt, started Harbor Freight and Salvage in a small building in North Hollywood, California. The company began as a mail order tool business that dealt with liquidated and returned merchandise. As the business grew, its name was changed to Harbor Freight Tools. In 1985, Eric Smidt was named president of the company at age 25; he served under that title until 1999, when he became chief executive officer. From the mid-1980s to 2010 Harbor Freight was headquartered in nearby Camarillo, California.

In 1980, Harbor Freight Tools opened its first retail store in Lexington, Kentucky, to sell returned merchandise from its mail order business. The original location was at 1387 East New Circle Road. It later moved to 1301 Winchester Road, Suite 213. The venture proved successful, and Harbor Freight Tools began to open stores across the United States. As of 2022, Harbor Freight Tools operates over 1,300 retail stores in 48 states.

Harbor Freight is sometimes referred to as Harbor Fright.  Their tools are for the most part inexpensive and are not really designed for heavy work, but they definitely have value for the beginner and weekend woodworker.  Some of their stuff is excellent, some not so much.  Plenty of excellent YouTube videos evaluating their products.  They are well worth checking out.