Tariffs deliberate by President-elect Donald Trump will make it more durable for IKEA to maintain costs low, the chief monetary officer of the world’s greatest furnishings retailer instructed Reuters on Wednesday.
Trump has pledged large tariffs on imports from the USA’ three largest buying and selling companions, Canada, Mexico and China, inflicting concern amongst governments and firms whose provide chains will depend on clean international commerce.
Some 30% of IKEA merchandise are sourced from Asian international locations together with China, with 70% coming from Europe, stated Ingka Group CFO Juvencio Maeztu, including that the largest IKEA retailer is “closely following” information on tariffs.
The US is IKEA’s second-biggest market globally, accounting for 13.2% of gross sales in its 2024 monetary yr.
“For us, trade barriers around the world, whether it is from one country or another country, are limiting the possibilities to make things more affordable for the many people,” Maeztu stated.
“We will keep working with governments and with our supply chain to try to mitigate the impact and to hope to secure affordability.”
IKEA, which sells $69 bookcases and $299 sofas, lower costs in 2024, attracting extra buyers however inflicting revenues and revenue to drop.
Requested about the potential of Trump’s administration slapping tariffs on merchandise from Europe, Maeztu stated it was greatest to not speculate however he can be watching developments over the approaching months.
