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IKEA moves more manufacturing to U.S. as tariffs raise costs


IKEA plans to increase the number of its products made in the United States as higher tariffs continue to push up the cost of importing furniture from overseas, according to a Reuters report.

The shift marks a notable change for the Swedish furniture giant. Only about 15% of the products IKEA currently sells in U.S. stores are made domestically, compared with much higher local production levels in other regions, including Europe and Asia. IKEA previously operated a factory in Danville, Virginia, but closed the facility in 2019 and moved production back to Europe.

The renewed focus on U.S. manufacturing comes as tariffs raise the cost of shipping bulky items such as bookcases, mattresses, and sofas across borders. While avoiding tariffs is one benefit, IKEA has said the bigger goal is to place production closer to customers so it can react more quickly to changes in demand and reduce the risk of overseas supply disruptions.

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