Walmart price hikes, driven by tariffs, could hurt Long Island families' wallets

Susan Hodgkiss, of North Babylon, a regular Walmart shopper, is not happy to hear the retailer is raising prices due to tariffs.

The 68-year-old who was shopping at the Farmingdale Walmart store Thursday said she would consider shopping elsewhere. 0

"I buy some groceries here, but I may stick to Lidl," she said. "I stick to the things I know I'm saving on. It's got to be that way today."

Walmart Inc., which became the nation's largest retailer by making low prices a priority, announced Thursday that while it's doing its best to absorb the higher costs from tariffs ordered by President Donald Trump, it will need to raise its prices in response to ongoing uncertainty surrounding those tariffs, according to The Associated Press.

"We can control what we can control," Walmart CEO Doug McMillon said on an earnings call Thursday, according to AP. "Even at the reduced levels, the higher tariffs will result in higher prices."

There are 14 Walmart locations on Long Island, including a Sam's Club in Medford and a Walmart Neighborhood Market in Levittown. Newsday reported in February that Walmart Inc. had a 5.59% market share on Long Island. 

Walmart could not be reached for comment Thursday. 

Stephanie Kelton, a political economist and Stony Brook University professor, said Long Island families may feel the brunt of the price hikes.

"For many families, Walmart is the primary place to shop," Kelton said. "There's so much under one roof. You can get food and all sorts of other products. So if you've got a kid and the school year's coming to an end, lots of families are going to shop there for their kids' sports gear and those sorts of things."

Walmart's announcement comes despite the retailer posting strong quarterly sales. In its first quarter earnings report, Walmart posted $165.6 billion in revenue and 4.5% sales growth, up from 3.8% in the first quarter of 2024.

The company  on its corporate site credited strong sales to its "competitive advantages," citing Sam's Club's "Scan & Go," which allows customers to pay as they shop by scanning barcodes.

McMillon said price increases started in April but will continue to be rolled out gradually, according to the AP. This comes despite Trump announcing the 145% tariffs on China would be reduced to 30%, effective May 14.

"It's kind of inevitable," said Noah Rohr, an equity analyst with financial services firm Morningstar. "When you have tariffs, the retailers will look to pass on costs to consumers."

Rohr said the price increases are necessary due to the amount of globally sourced products at Walmart. 

"The general merchandise side of things is where you'll see more of an impact," Rohr said. "They source a lot of toys from China. Electronics come from China and Mexico. A lot of apparel comes from Vietnam. So once you get into those kinds of categories, there will be a fairly acute tariff impact."

Walmart's earnings call comes a week before competitor Target's May 21 earnings call. Rohr predicted Target will report a similar outlook.

"My expectation is that most of the retailers will probably follow suit with what Walmart's saying and that the products that are exposed to tariffs will result in higher prices for consumers," he said.