USA –    Ikea plans to increase sourcing from U.S. factories as tariffs introduced by President Donald Trump’s administration have raised the cost of importing products such as mattresses, sofas and bookcases, a company executive told Reuters.

The move marks a strategic shift for the Swedish furniture retailer, whose share of U.S.-made products has declined over the past decade. Inter Ikea, which manages the brand’s franchising, closed its Virginia manufacturing facility in 2019 and shifted production back to Europe.

The renewed focus on local manufacturing is intended to support Ikea’s expansion in the United States—its second-largest market—and across the Americas, including Mexico, Canada, Chile and Colombia, with future store openings planned in Panama and Costa Rica.

In 2023, Ikea announced a USD 2.2 billion investment over three years to expand its U.S. operations.

Inter Ikea global supply manager Susanne Waidzunas said the company is redesigning its supply chain to be “more resilient, robust and responsive,” noting that heavy reliance on imports has resulted in longer delivery times. Producing closer to customers would allow faster responses to shifts in demand.

Although the decision was made before recent tariff increases, Waidzunas said the current environment has added urgency, as higher tariffs have forced Ikea to raise prices on some U.S. products. The company has reported declining sales for two consecutive years amid price cuts aimed at supporting cost-conscious consumers.

According to Reuters, Ikea supplier SBA Home is expanding production at its first U.S. factory in North Carolina. The USD 70 million investment, partly backed by Inter Ikea, will manufacture products such as KALLAX shelving and is expected to reach an annual output of two million units.

Currently, only 15% of Ikea products sold in the U.S. are manufactured domestically, down from 19% in 2014, compared with 70% in Europe and 80% in Asia. Ikea plans to expand partnerships with existing U.S. suppliers and source most mattresses locally.