Ikea CEO warns prices will jump under new Trump tariffs
Jesper Brodin, chief executive of Ingka Group said that the company had ‘never experienced a period of benefit’ when high tariffs had been imposed
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Your support makes all the difference.The CEO of Swedish furniture giant Ikea has joined the throng of politicians and business leaders warning that new international tariffs proposed by Donald Trump will result in price hikes for consumers.
Jesper Brodin, chief executive of Ingka Group – which runs the majority of Ikea stores – said that the company had “never experienced a period of benefit” when high tariffs had been imposed.
On Monday, the President-elect announced plans for hefty international tariffs, including on three of America’s biggest trading partners: Canada, Mexico and China.
Around 30 percent of Ikea’s goods are produced in Asia, mostly in China, with the remaining 70 percent manufactured in Europe.
Speaking to CNN on Wednesday, Brodin said: “In general, we don’t believe tariffs will support international companies and international trade. At the end of the day, that risks ending up on the bills of customers.
“Tariffs make it more difficult for us to maintain the low prices and be affordable for many people, which in the end is our goal. We have never experienced a period of benefit when we had high tariffs.”
However, Brodin conceded that any imposed tariffs were “beyond our control.” “We will need to understand and adapt,” he said.
When asked by CNN, he did not directly answer a question about whether Ingka Group, which runs most Ikea stores, plans to relocate any of its production in light of Trump’s tariffs.
Last year, Ikea cut prices on roughly 2,000 products – at a cost of more than $2.1 billion – to give consumers a break from inflation, which experts have warned may increase due to the tariffs.
Experts have warned that the President-elect’s threatened tariffs will likely have major impacts on key sectors of the US economy, including the auto industry, crude oil and agriculture.
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