Ikea will raise prices in the US to offset costs from a fresh round of tariffs on imported furniture, the company said, as sales at its parent group Inter Ikea fell for a second consecutive year.
Tolga Öncü, retail manager at Ingka, which operates most Ikea stores globally, told The Wall Street Journal that while the company is working to cut operational costs, it must pass on some of the tariff impact to customers.
“Our ambition is to continue lowering prices. We have to adapt and pass on parts of the cost increase to the customers,” Öncü said, adding that the tariffs reinforce the need to explore more US-based production.
Ikea, founded in 1943 by Ingvar Kamprad, has long focused on affordable, functional products. But with just 15% of its US range sourced domestically, the brand is vulnerable to the levies, though its kitchen cabinets are largely exempt.
The company has also launched a smaller-store format in US towns to drive growth. Inter Ikea’s total retail sales fell 1% to $52 billion for the year ending in August. Full fiscal year results are expected next month.