PREVIEW

IKEA to Increase U.S. Production to Offset Tariff Impact. IKEA plans to ramp up production in the U.S. to counteract the rising costs of imports due to President Trump's tariffs. After a decade of declining U.S.-made products, IKEA shifts focus to manufacturing closer to home, aiming to expand in North and South America. Susanne Waidzunas of Inter IKEA highlighted the need for a more resilient supply chain that can quickly respond to demand shifts. The company had previously closed its Virginia factory in 2019 but now sees benefits in producing closer to U.S. consumers. IKEA is facing higher product prices due to tariff impacts but continues to prioritize affordability despite declining sales. A Lithuanian supplier, SBA Home, is expanding its North Carolina factory with support from Inter IKEA to produce top-selling products like KALLAX shelves. Only 15% of IKEA’s products sold in the U.S. are made locally, compared to 70% in Europe and 80% in Asia. IKEA plans to partner with U.S. suppliers like Sauder Woodworking and expand its mattress sourcing within the U.S.
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