Ikea searches for balance in the face of tariff-related hikes

The impact of tariffs on furniture is being felt by Top 100 retailer Ikea U.S., as it is raising prices on some items.

A report by the Wall Street Journal notes that the Conshohocken, Pa.-based division of the Swedish furniture maker and retailer is working to adapt to the current landscape, which means some prices are going up. Additionally, Ikea is looking for more opportunities to source product in the U.S.

Earlier in the week, the Trump administration imposed duties ranging from 10% to 50% on imported wood products and furniture, including upholstered seating and cabinetry.

Ikea’s moves come about a year after Ingka Group, the largest Ikea retailer, announced investments that led to lower prices to help combat economic uncertainties, high interest rates and inflation. In a statement to Furniture Today, the company says keeping pricing as low as possible remains the goal.

“Affordability remains a top priority for Ikea, especially during economic uncertainty. The U.S. is one of our most important markets, with over 50 stores, thousands of employees, and we have continued to invest in local sourcing, manufacturing and job creation,” the statement said. “We source globally and locally, producing key products in the U.S. While we’ve made some necessary price adjustments due to rising costs, we are committed to keeping prices low and providing quality goods to our customers.”

See also:

• Ikea retail group’s big city growth strategy includes another NYC deal
• Ikea celebrates 40 years as U.S. retailer