Ikea is raising the prices of certain products in the United States due to trade tariffs imposed by the Trump administration. The tariffs, aimed at protecting American industries, target imported wood products and furniture. For instance, the current 25 percent tariff on upholstered furniture and kitchen cabinets will rise to 30 percent in January, while the tariff on cabinets could increase up to 50 percent.
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Ikea, which sources about 90 percent of its range globally, feels the effects of these measures directly in its cost structure. The company is therefore exploring ways to mitigate the impact of the tariffs, including considering domestic production. For the U.S. market, Ikea has already started sourcing kitchen cabinets locally and is exploring the possibility of producing mattresses in the U.S. as well.
With these adjustments, the furniture giant aims to offset rising import costs and ensure product availability for American customers. Ikea emphasizes that it remains committed to offering affordable furniture despite the higher costs due to trade measures.
Source: BusinessAM
