Ikea warns that Trump’s tariffs could increase its prices

London () — The CEO of the company behind Ikea furniture stores says Donald Trump’s planned tariffs will make it harder to keep its prices low, joining a growing chorus of business leaders warning of a possible impact on pocketbooks. of people due to liens.

“We believe that tariffs will not support… international companies and international trade. At the end of the day, that risk will be reflected in customers’ bills,” Ingka Group CEO Jesper Brodin told on Wednesday ahead of the opening of Ikea’s pop-up store on London’s Oxford Street on Thursday.

“Tariffs make it more difficult for us to keep prices low and affordable for many people, which is ultimately our goal,” he added. “We never experienced a period of profit when we had high tariffs,” he said, referring to both Ikea and the global economy. “But it is out of our control. We will need to understand and adapt.”

On Monday, the US president-elect promised massive increases in tariffs on goods from Mexico, Canada and China. In response, officials in those countries warned that the tariffs would hurt the economies of everyone involved, including the United States.

“To one tariff, another will come in response and so on until we put common businesses at risk,” said Mexican President Claudia Sheinbaum on Tuesday during her morning press conference.

Business Lobbies for the US Retail and Consumer Goods Industries They have also sounded the alarms. Tom Madrecki, vice president of campaigns and special projects at the Consumer Brands Association, told that the tariffs were a “clear and present danger” to its members. The group represents Coca-Cola, General Mills, Molson Coors and dozens of other packaged goods companies.

Most of Ikea’s products – around 70% – are produced in Europe, with the remaining 30% manufactured in Asia, mainly China.

On Monday, Trump said he would impose an additional 10% tariff on goods from China until the country stops the flow of illegal drugs into the US.

Brodin did not directly respond to a question about whether the Ingka Group, which operates most Ikea stores, plans to relocate any of its production in light of Trump’s tariffs, but stressed that it has long-standing relationships with suppliers from more than 10 years on average.

“(We) stay in long-term relationships, for better or worse,” he said.

Last year, Ikea cut prices on about 2,000 products — at a cost of more than 2 billion euros ($2.1 billion) — to give respite to consumers burdened by inflation. As a result, it recorded a drop in annual revenue in value terms, although it sold a higher volume of items.

The launch of Ikea’s pop-up store on London’s Oxford Street on Thursday will come ahead of the opening of a permanent store on the iconic shopping strip in spring next year.

Hus of Frakta, as the pop-up store is called, is inspired by Ikea’s giant blue bags, used for everything from shopping to carrying clothes. Visitors will be able to personalize their own Frakta bag and shop from a collection of around 100 Ikea products.

When the fully developed store opens next year, three floors will provide customers with “pretty much the full Ikea experience,” including its famous meatballs, according to Brodin.

Ikea bought the building that used to house a Topshop store for 378 million pounds ($476.6 million) two years ago and has undertaken a massive renovation of the seven-story structure, which is more than 100 years old.

The city center store will target customers who cannot or do not want to travel to Ikea’s larger stores in Wembley and Croydon, outside London.