The chief financial officer of Ikea, the world's largest furniture retailer, told Reuters on Wednesday that President-elect Donald Trump's planned tariffs will make it harder for the company to keep prices low.
President Trump has promised to impose huge tariffs on imports from the United States' three largest trading partners, Canada, Mexico, and China, putting pressure on governments and businesses whose supply chains depend on smooth global trade. This is causing concern among people.
Inca Group Chief Financial Officer Juvencio Maeztu said about 30% of IKEA products are sourced from Asian countries, including China, and 70% comes from Europe, adding that the largest IKEA retailers are subject to tariffs. He added that he was “closely monitoring” news regarding the issue.
The United States is IKEA's second-largest market globally, accounting for 13.2% of sales in fiscal 2024.
“For us, trade barriers around the world, whether coming from one country or another, limit the possibility of making things more affordable for many people.” said Maeztu.
“We continue to work with governments and supply chains to reduce impacts and ensure affordability.”
Ikea, which sells $69 bookshelves and $299 sofas, lowered prices in 2024 and attracted more shoppers, but sales and profits fell.
Asked about the possibility of the Trump administration imposing tariffs on European goods, Maeztu said it was best not to speculate, but that he would keep an eye on developments in the coming months.
