Jesper Brodin, CEO of Ingka Group, the largest global IKEA franchisee, has stated that fewer trade tariffs would benefit businesses, especially international ones like IKEA. Speaking at the World Economic Forum in Davos, Brodin emphasised that tariffs increase risks for companies, often resulting in higher prices for customers. 'The fewer tariffs, the better,' he said, explaining that harmonised tariffs help businesses avoid passing costs onto consumers.
Jesper Brodin, CEO of Ingka Group. Photo: Ingka Group.
Despite recent challenges like inflation and high interest rates impacting consumer behaviour, Brodin expressed optimism about a recovery in demand, especially for larger purchases such as wardrobes and kitchens. 'We are quite optimistic about the outlook,' he added, noting a return to more typical consumption patterns.
However, Brodin also highlighted his primary concern as climate change, pointing to the severe economic repercussions of extreme weather events. He stressed the need for global cooperation, particularly between the U.S., Europe, and China, to address climate challenges. 'There is still a myth out there that adapting to mitigate climate change will be an economic loss,' he said, adding that IKEA has found the opposite to be true.
Despite a drop in net profit and sales last year, Ingka Group has maintained a focus on sustainability and is working to accelerate climate action. Brodin's remarks underscored the urgency for both businesses and governments to act more swiftly in the face of growing environmental risks.
Source: www.reuters.com