IKEA braces for potential U.S. tariffs with enhanced supply chain readiness
IKEA has reinforced its supply chain resilience in preparation for potential U.S. trade barriers, CFO Henrik Elm of Inter IKEA told Reuters. Elm stated that the company has adapted its logistics framework, making it better equipped to respond to trade disruptions, though he acknowledged that it remains vulnerable to significant tariff changes. This comes amid President-elect Donald Trump’s proposal of a 10% tariff on all U.S. imports and a 60% tariff specifically on imports from China.
Inter IKEA, which supplies products to IKEA’s franchises globally, highlighted its reliance on imports for the U.S. market, with only 10% of U.S.-sold products manufactured domestically. By contrast, 70% of its products in Europe are sourced locally, and in China, 80% are produced within the region. This dependency makes the U.S. market particularly sensitive to import tariffs.
Ingka Group, IKEA’s largest franchisee, has already committed a 2 billion euro ($2.14 billion) investment to strengthen its footprint in the U.S. This move aligns with the company’s broader efforts to fortify its market resilience amid shifting trade policies. Globally, IKEA’s primary sourcing countries are Poland, China, Italy, Lithuania, and Germany, though the company withheld specific percentages for each country.
