IKEA Grows in Manhattan Despite Trump's Tariffs

IKEA's Growth Strategy in the USA

Swedish furniture giant IKEA is expanding its presence in New York's Manhattan district despite the increasing customs tariffs of US President Donald Trump's administration. The company, through Ingka Investments, the investment unit of Ingka Group, purchased the address 529 Broadway in the SoHo district and plans to open the brand's second store in Manhattan there.

Strategy Behind the Investment

This significant move stands out as part of the company's total $2.2 billion investment plan in the USA, following its acquisition of 570 Fifth Avenue last year. Peter van der Poel, Managing Director of Ingka Investments, said, “This investment is our fourth significant real estate investment aimed at supporting growth in leading cities around the world.”

New Store in SoHo

IKEA's US CEO Javier Quiñones described the opening of the new store in SoHo as a step towards the goal of “being closer to people.” The company plans to use two floors of this new 53,000 square meter building as a store, while the upper floors will be converted into offices.

Customs Duties and the Company's Response

This acquisition takes place at a time when the Trump administration has decided to impose additional customs duties on kitchen cabinets and upholstered furniture. These tariffs, expected to take effect in October, are likely to increase retailers' costs and negatively impact global supply chains. However, Ingka representatives emphasize the importance of growth in the USA even in this context.

Contribution to US Employment

An Ingka spokesperson stated, “IKEA has been operating in the USA for 40 years, and this market is very important for us,” highlighting that the $2.2 billion investment will create new jobs in the country. Currently, IKEA has more than 50 stores across the USA. Last year, it achieved $5.5 billion in sales and $1.9 billion in e-commerce revenue.