Ikea Warns Trump’s Tariffs Could Lead to Higher Prices for Consumers

The Swedish retailer’s executives highlight challenges to maintaining affordability as trade barriers loom under the President-elect’s proposed policies.

Ikea’s parent company, Ingka Group, reported a 47% drop in net profits for the year, partially attributed to a €2 billion price-cutting effort to ease inflation for customers.
President-elect Donald Trump has announced plans to impose significant tariffs on imports from China, Canada, and Mexico, with potential future levies on European goods, raising concerns for global businesses like Ikea.
Ikea sources 70% of its products from Europe and 30% from Asia, including China, making the company highly vulnerable to the proposed tariffs’ impact on supply chains and costs.
Executives from Ingka Group caution that maintaining low prices—a cornerstone of Ikea’s business model—will become increasingly difficult if trade barriers are enacted, potentially leading to price increases for consumers.
The U.S., Ikea’s second-largest market, accounted for 13.2% of its global sales in 2024, further amplifying the potential impact of the tariffs on the company’s operations and pricing strategies.