Home furnishing giant Ikea warns Trump’s tariffs could cause hike in prices
The chief executive of the company behind Ikea furniture stores says President-elect Donald Trump’s planned tariffs will make it more difficult to keep its prices low, joining a growing chorus of business leaders in warning of a potential hit to people’s wallets from the levies.
“We believe tariffs will not support … international companies and international trade, with, at the end of the day, that risk turned up on the bills of customers,” Jesper Brodin, Ingka Group CEO, told CNN on Wednesday ahead of the opening of Ikea’s pop-up store on London’s Oxford Street Thursday.
“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,” he added. “We have never experienced a period of benefit when we had high tariffs,” he said, referring both to Ikea and the global economy. “But it’s beyond our control. We will need to understand and adapt.”
Ikea is the latest business to express concern over Trump’s tariff announcement. A leading footwear industry trade group warned the tariffs on neighboring countries will lift prices on Americans. The trade group represents dozens of companies including Nike, DSW, Cros, Under Armour and Walmart. Meanwhile, shares of General Motors, Ford and Chrysler owner Stellantis all retreated on Tuesday after Trump announced tariff hike proposal on all products coming from Mexico and Canada
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