Ikea is increasing the amount of products it makes in the US as the world’s largest home furnishings retailer comes under pressure from US President Donald Trump’s tariffs on furniture and kitchen cabinets.
The flat-pack retailer, which made revenues of $5.5bn in the US last year, currently produces only about 15 per cent of products that it sells in the US domestically. That compares with 75 per cent local production in Europe and 80 per cent in Asia.
“We want to continue to expand in the US and Canada — how do we optimise a good supply set-up where we secure the right access to materials, to components, to production? That’s very long-term work that we’re doing,” Jon Abrahamsson Ring, chief executive of Inter Ikea, the owner of the brand, told the Financial Times.