IKEA Adjusts Pricing as New Tariffs Kick In

IKEA's long run of price cuts is slowing as the global furniture retailer adapts to higher costs and new U.S. trade measures.

The Swedish company, known for its affordable designs, plans to raise prices on some products and increase U.S. sourcing to manage expenses and stay competitive.

"Our ambition is to continue lowering prices," Tolga Öncü, retail manager at Ingka Group, which operates most IKEA stores worldwide, told The Wall Street Journal.

"But of course in the world we live in sometimes that becomes very difficult or even impossible at some point. We have to adapt and pass on parts of the cost increase to the customers."

Inter IKEA Group, which owns the brand, said global retail sales totaled about $52 billion in the year ending in August. That was slightly below the previous year, even as sales volumes increased 3%, with lower prices supporting demand but holding down overall revenue.

IKEA's pricing strategy reflects its belief that furniture should be attractive, functional, and affordable. That idea, rooted in founder Ingvar Kamprad's focus on simplicity and thrift, remains central as the company faces higher material, shipping, and tariff-related costs.

Only about 15% of IKEA's products sold in the United States are made in North America. To reduce exposure to import costs, the company is expanding partnerships with U.S. suppliers and already produces all kitchen cabinets for the American market locally.

Öncü said mattresses and other products could follow. "These tariffs are confirming we are on the right track when it comes to exploring possibilities to produce more in the U.S.," he said.

Some products have already become more expensive. The Uppland sofa now sells for $899, up from $849 in August. A three-piece oak bedroom set rose from $959 to $1,049. IKEA says those adjustments reflect specific cost increases, not a shift away from affordability.

Executives say the company will keep investing in logistics, automation, and energy efficiency to help control prices. The United States remains one of IKEA's most important markets, and its goal is to combine scale, local production, and efficiency to keep home furnishings within reach for most consumers.

President Donald Trump's new furniture tariff took effect this week, imposing a 25% duty on couches, sofas, chairs and kitchen cabinets, along with a 10% tariff on timber and lumber.

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