Ikea announces price hikes

The popular furniture brand IKEA is known for its low prices and expansive collection of stylish items, but soon, customers will have to pay a little more for some items on offer.

IKEA will be raising prices on some of its items in reaction to a new wave of U.S. tariffs from President Donald Trump, as only around 15% of the brand’s products are currently sourced from the U.S., according to a report from the Wall Street Journal about the price hikes.

Tolga Öncü, who is a retail manager at the company Ingka, which manages most of IKEA’s retail locations throughout the world, told the publication of the move, “Our ambition is to continue lowering prices. But of course in the world we live in sometimes…that becomes very difficult or even impossible at some point.”

“We have to adapt and pass on parts of the cost increase to the customers… We can’t stay immune to absorb all the costs ourselves,” Öncü explained.

IKEA is Focused on Keeping Costs Low

Despite the announcement that some prices will go up, the brand is adamant that the focus of the company remains on keeping prices low.

“The big work sits in finding ways to lower the prices,” said Öncü. Already, IKEA has worked on lowering operational costs in order to keep the prices steady despite outside factors like tariffs.

IKEA is shifting its strategy to source more materials from inside the U.S., with the Wall Street Journal reporting that the brand now domestically sources all of its kitchen cabinets sold in the U.S.

EMERYVILLE, CALIFORNIA - SEPTEMBER 26: Furniture is displayed at an IKEA store on September 26, 2025 in Emeryville, California. (Photo by Justin Sullivan/Getty Images)

The company is trying to find other products that can also be locally sourced, such as mattresses, with Öncü saying of the current situation, “These tariffs are confirming we are on the right track when it comes to exploring possibilities to produce more in the U.S.”

New Furniture Tariffs Went Into Effect This Week

IKEA’s higher prices are the result of a new round of tariffs on furniture that went into effect this past week. Goldman Sachs published an analysis on the new furniture tariffs, via The Hill, that reported that most companies will pass on the cost to the consumer in the next few months.

“At the moment, however, U.S. businesses are likely bearing a larger share of the costs because some tariffs have just gone into effect and it takes time to raise prices on consumers and negotiate lower import prices with foreign suppliers,” the report stated.

According to The New York Times, the tariffs that went into effect on Oct. 14 included 25% on upholstered furniture and 25% on cabinets and vanities, with the percentages set to rise to 50% on Jan. 1, 2026.

For IKEA, while the company admitted that some prices will inevitably go up, it remains committed to keeping the costs of its products as low as possible.