The chief executive of Ikea's main operating company has warned that the tariffs proposed by US President-elect Donald Trump will push up prices for consumers. Jesper Brodin, who leads Ingka Group, which operates the majority of Ikea stores worldwide, said that history showed high tariffs did not benefit international trade or companies.
Speaking to CNN, Mr Brodin said the cost of tariffs would ultimately be borne by shoppers. He noted that they made it harder for Ikea to maintain low prices and remain affordable for many people, adding that the company had “never experienced a period of benefit” under high tariffs.
Mr Brodin acknowledged that the tariffs were beyond the company's control and said Ikea would need to understand and adapt. He did not directly answer a question about whether production might be relocated. Around 30 percent of Ikea's goods are produced in Asia, mostly in China, with the remaining 70 percent manufactured in Europe.
The warning comes after Mr Trump announced plans for hefty tariffs on some of America's biggest trading partners, including Canada, Mexico and China. Last year, Ikea cut prices on roughly 2,000 products at a cost of more than $2.1 billion to ease the impact of inflation. Experts have cautioned that the threatened tariffs could also significantly affect key sectors of the US economy, including the auto industry, crude oil and agriculture.
