Overview

• New U.S. tariffs now in effect include 10% on wood and 25% on upholstered furniture and kitchen cabinets, with rates set to rise on Jan. 1 unless exporting countries secure relief.
• IKEA has increased prices on select items, including roughly $50 more for the Uppland sofa and about $90 to $100 more for a three-piece oak bedroom set.
• Ingka retail chief Tolga Öncü said the company must pass on part of the higher costs to customers despite a continuing aim to lower prices.
• Only about 15% of IKEA’s U.S. assortment is domestically produced, though its U.S.-sold kitchen cabinets are already sourced locally and the company is exploring more U.S. manufacturing such as mattresses.
• Large chains like Walmart and Target have raised or signaled higher prices, and Goldman Sachs estimates U.S. consumers will ultimately shoulder about 55% of tariff costs.