IKEA Faces Pricing Challenges Amid Trump's Tariff Plans

IKEA anticipates increased difficulty in maintaining low prices due to proposed tariffs by U.S. President-elect Donald Trump. The tariffs on imports from major trading partners may affect IKEA's supply chain, which largely sources from Asia and Europe. The CFO emphasizes working with governments to mitigate impacts.

IKEA is bracing for potential price hikes following U.S. President-elect Donald Trump's proposed tariffs, which threaten to disrupt the furniture giant's global supply chain.

With Trump targeting major trade partners, IKEA CFO Juvencio Maeztu expressed concern about challenges in maintaining affordability, as 30% of IKEA's products are sourced from Asia, particularly China, and 70% from Europe.

The U.S., IKEA's second-largest market, accounts for a significant portion of sales. Maeztu highlights ongoing efforts to engage with governments to minimize the tariffs' impact while remaining cautious about future policy developments.

(With inputs from agencies.)