IKEA is preparing to increase the volume of products sourced from manufacturing facilities in the US in response to rising import costs linked to tariffs imposed during the Trump administration, its senior supply chain executive has told Reuters.
The change represents a reversal of a long-term decline in domestic production for the US market.
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IKEA’s franchiser, Inter IKEA, closed its manufacturing site in Danville, Virginia in 2019, relocating production back to Europe and only 15% of IKEA products sold in the US are produced domestically, down from 19% in 2014.
In comparison, 70% of the company’s European sales and 80% of its Asian sales come from regionally manufactured goods.
IKEA’s main sourcing countries remain China, Germany, Italy, Lithuania and Poland.
Inter IKEA global supply manager Susanne Waidzunas told Reuters that the company’s US operations rely heavily on imported furniture with long delivery lead times.
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By GlobalDataThe shift toward regional production was planned before 2025’s tariff increases but has gained relevance, as prices on certain products in the US were later adjusted to manage the additional costs.
IKEA has recorded two consecutive years of declining sales while cutting prices to attract customers under inflationary pressure.
At the same time, Lithuanian supplier SBA Home is expanding output at its first US manufacturing facility in Mocksville, North Carolina.
The $70m site, supported in part by Inter IKEA, is set to produce up to two million furniture items annually, including KALLAX shelving units.
IKEA also intends to increase purchasing from US-based suppliers, including Sauder Woodworking.
