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IKEA Warns U.S. Shoppers May Face Higher Prices as New Tariffs Take Effect

IKEA Warns U.S. Shoppers May Face Higher Prices as New Tariffs Take Effect

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IKEA Warns U.S. Shoppers May Face Higher Prices as New Tariffs Take Effect

by Daisy Mae D.
10/01/2025
in Tariffs & Duties

IKEA has cautioned that American consumers could soon face higher furniture prices following President Donald Trump’s decision to impose new tariffs on imported furniture. The Swedish retail giant, known globally for its low-cost home furnishings, said it will work to keep products affordable in the U.S. market but acknowledged that tariffs make this goal more difficult to achieve.

“Our goal is to offer affordable, good-quality home furnishings to everyone,” IKEA said in a statement provided to Newsweek. “In our experience across the markets we operate in, tariffs make these ambitions more difficult.” The company added that while it will attempt to absorb additional costs where possible, it cannot guarantee that U.S. prices will remain unchanged.

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Tariffs Targeting Furniture and Other Goods

The warning follows Trump’s announcement last week on Truth Social of a new set of trade measures. Beginning October 1, 2025, imports of kitchen cabinets, bathroom vanities, and related products will be subject to a 50% tariff. Upholstered furniture such as sofas and chairs will face a 30% tariff, while other goods—including patented drugs and heavy-duty trucks—are also being targeted. Pharmaceutical imports will be subject to a 100% duty, and heavy-duty trucks a 25% duty.

The furniture tariffs are part of a broader package of trade actions that the administration says are designed to strengthen domestic industries and reduce reliance on foreign-made goods. Trump has repeatedly argued that tariffs help “level the playing field” for U.S. manufacturers, though businesses and consumer groups have expressed concern about higher costs being passed on to shoppers.

IKEA’s Position in the U.S. Market

IKEA, which operates more than 50 stores across the United States, relies on a global supply chain for its wide range of furniture, appliances, and home accessories. The company has built its brand on offering stylish, affordable products, and any significant price increases could challenge its value-driven reputation.

Industry analysts note that furniture retailers are particularly sensitive to tariffs, as many products are manufactured overseas. The additional duties could increase costs along the supply chain, from raw materials to finished goods, ultimately affecting consumers at the retail level. While IKEA has not announced specific price adjustments, the company’s comments suggest American households could see noticeable changes in furniture affordability if tariffs remain in place.

Broader Impact on Retail and Consumers

IKEA is not the only company facing challenges from the new trade measures. Other furniture retailers, along with businesses in industries such as pharmaceuticals and automotive, are expected to be affected. Consumer advocacy groups warn that the tariffs may reduce affordability at a time when inflationary pressures have already strained household budgets.

The extent of price increases will depend on how companies adjust their sourcing, supply chain strategies, and pricing policies. Some may absorb part of the added costs to remain competitive, while others may pass them directly to consumers.

For now, IKEA has committed to doing what it can to contain costs. However, the retailer stressed that its ability to shield U.S. shoppers from price hikes is limited in the face of broad, sector-wide tariff measures.

#TradePolicy #TariffUpdate #RetailNews #SupplyChainNews #NewsUpdate


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