Ikea Raises U.S. Prices as Trump Implements Timber Tariffs

President Donald Trump implemented import tariffs on timber, lumber, and furniture effective October 14, citing national security and the protection of American manufacturing. Current levies include a 10% tariff on softwood lumber and 25% duties on upholstered furniture, kitchen cabinets, and bathroom vanities. These rates are scheduled to increase on January 1 to 30% for furniture and 50% for cabinets unless the U.S. reaches agreements with affected countries.

Swedish retailer Ikea is raising prices for some U.S. products to offset these costs. The company, which sources approximately 90% of its products from external global suppliers, reported cost increases of nearly $50 for some sofas and $100 for bedroom sets. To mitigate the impact, Ikea is expanding domestic production by sourcing mattresses and kitchen cabinets from local U.S. suppliers.

The tariffs have triggered reactions globally. In Malaysia, the fifth-largest supplier of wooden furniture to the U.S., the Malaysian Furniture Council and Muar Furniture Association are urging their government to provide tax rebates and financial assistance. The Malaysian Investment, Trade and Industry Ministry is currently seeking tariff exemptions from the United States to maintain demand in its largest consumer market.