I’ve never been in an IKEA store. I know that they offer furniture, cabinets, and more home decor. Much of what is sold at IKEA is delivered in kit form. Consumers assemble the pieces using screws and cam devices. A few tools, such as a screwdriver and a rubber mallet, are required. I have assembled several pieces of kit furniture, including a bunk bed that our grandson used, a couple of desks and printer stands for church offices, and a few other items. I have friends who purchased kitchen cabinets from IKEA and are pleased with the results after a few frustrations with what they thought were incomplete instructions.

IKEA built its market share in the US on its budget-friendly pricing. Kit furniture could be sold at lower prices than completed furniture. A quick glance at the IKEA website reveals that many of the products sold in their retail stores can be purchased online. There is so much, however, that making a selection might be a challenge.

IKEA was founded in Sweden with the vision of creating a better life for people, regardless of the amount of money they had to spend. The name of the company is an acronym. I and K are the initials of the founder, Ingvar Kamprad, who started as an entrepreneur selling pens and wallets out of his home. E stands for Elmtaryd, the farm where he grew up, and A stands for Agunnaryd, a nearby village.

The company started out focusing on inexpensive wooden furniture. However, it has grown to a network of over a thousand suppliers in over 50 countries. Some products are produced in multiple countries. There are major production hubs in China, Poland, Italy, and Germany.

Like other global companies, IKEA considers labor and material costs when determining where to produce its products. Those locations are changed in response to global economic conditions. The global economy also affects where its products are sold.

Several rounds of tariffs have made a challenge to the company for marketing in the US in recent months. There have been times when the company cannot determine which tariffs apply or what the retail cost of an item will be when it is making manufacturing decisions. The result has been a slump in sales. Because the company was in the process of intentionally lowering prices to remain competitive during the economic slowdown, it is difficult to tell the exact impact of the tariffs. Still, U.S. sales have dropped significantly this year.

One company, however, doesn’t paint the entire picture of how the tariffs are impacting the U.S. housing market. It isn’t just furniture and cabinets that are driving lower home sales. Tariffs on construction materials, including steel, copper, and wood, have increased the cost of new construction and remodeling. Home buyers and renovators have faced costs as much as 50% higher than initially estimated. For most buyers, it is the largest purchase of their lives, and for many, the price increases have made it impossible for them to purchase a home.

With an already raging housing crisis driven by low inventory, high interest rates, and high demand, this new round of price increases is shifting the dream of home ownership for many. People who are forced into the rental market become trapped in high rental costs that prevent them from accumulating enough savings to purchase a home.

It isn’t just housing. Automobile dealers are using leasing programs to sell cars. Many U.S. consumers become trapped in a situation where they never own, but only rent. The price of an item no longer matters when all they are able to see is the monthly fee. Those who do not own have no control over costs. It is a form of feudalism.

So far, we have avoided much of the rental dilemma by purchasing used items. In fact, much of the furniture in our house wasn’t even purchased. It was obtained from relatives as they downsized. Well-made furniture can last for multiple generations of use.

We have seen ourselves as priced out of the new car market and have purchased used vehicles. With careful maintenance, we have been able to make our vehicles last for many years. Our “new” car is 14 years old. It is in good shape, and we plan to drive it for many more years. Looking at prices in our area, it is clear that when we need to replace it, we will not be able to afford a vehicle with mileage as low as was the case when we bought that car. Fortunately for us, our mileage is decreasing as we settle into retirement. We no longer need to drive as much as we did earlier in our lives.

Tariffs are imposed to encourage domestic production. However, modern manufacturing is dependent on international markets for raw materials. Even when major manufacturers increase domestic production, they can’t altogether avoid tariff costs. No amount of tariffs will offset the increasing demand for products. The result is higher prices and lower living standards. That was true in the 20th century when isolationism was a factor in a global depression. Faltering economies contribute to the rise of authoritarianism. However, policymakers seem to have a very short memory and resist learning from history.

As we continue a slow process of downsizing, we face the dilemma of what to do with some of our possessions. As our grandchildren become independent and move out of their parents’ homes, they may need furniture. Even IKEA’s prices will likely be too steep. The ability to give them furniture is appealing. However, we have no idea if they will want any of the furniture in our home. It isn’t fancy. It isn’t modern. It is sturdy, however. And, unlike IKEA, it doesn’t take an instruction manual to assemble.

Of course, all of that assumes that our grandchildren will be able to find a place to live independently. They will need more than furniture. We live in unsettling times, and like others, we are unsure of how best to plan for the future.