Finance
Husqvarna CEO Says Gulf Tensions Could Drive Costs $32 Million Higher
Published by Global Banking & Finance Review®
Posted on April 23, 2026
2 min readLast updated: April 23, 2026
Add as preferred source on Google
Quick Summary
Husqvarna’s CEO warns that continued Middle East turmoil could raise company costs by SEK 300 million (~$32 million) in 2026, driven by logistics delays and raw‑material price spikes, potentially forcing price hikes amid cautious North American consumer demand.
Husqvarna CEO Warns Gulf Tensions May Increase Costs by $32 Million
Impact of Middle East Turmoil on Husqvarna's Operations
CEO's Cost Projections Amid U.S.-Iran War Concerns
April 23 (Reuters) - Husqvarna's chief executive said on Thursday that the turmoil in the Middle East could increase the Swedish garden equipment maker's costs by 300 million Swedish crowns ($32 million) this year if the U.S.-Iran war is extended.
Breakdown of Expected Cost Increases
"If this situation continues for the rest of 2026, I would ... see around 100 million crowns of headwind from logistics and 200 million from raw materials," CEO Glen Instone told Reuters.
Logistics and Raw Material Pressures
He said longer transport routes were beginning to raise freight costs, while oil prices were feeding through into plastics and could also affect steel and aluminium.
Potential Responses to Cost Inflation
Husqvarna would have to respond with higher prices if cost inflation of that scale materialised, Instone said.
"We must do it by way of price. That is always difficult, pushing through even more price increases, but we must do it if we get an inflationary pressure of that magnitude," he said.
Regional Impact and Demand Risks
For Husqvarna, price increases matter particularly in North America, where the company is seeing improving trends in its professional business but remains cautious on the consumer side.
Demand remains the biggest risk to the outlook, Instone said, adding that costs of tariffs and raw materials could in principle be offset, but a weaker end-market was harder to control.
Supply Chain Adjustments and Tariff Strategies
Husqvarna relies on imported products for about 40% of its U.S. sales and has been reworking its supply chain to limit exposure to higher U.S. tariffs, shifting some production from China to Europe and rerouting shipments.
($1 = 9.2495 Swedish crowns)
(Reporting by Alexander Klyve Gudbrandsen and Jesus Calero, editing by Milla Nissi-Prussak)
Key Takeaways
- •Geopolitical instability in the Middle East—particularly a prolonged U.S.‑Iran conflict—is pushing up oil and freight costs, squeezing logistics and raw material expenses globally (procurement360.io).
- •Husqvarna estimates cost headwinds of roughly SEK 100 million from logistics and SEK 200 million from raw materials if tensions persist through 2026, which may necessitate passing costs to customers via price increases (oliverwyman.com).
- •To mitigate tariff exposure, Husqvarna is reconfiguring its supply chain—shifting production from China to Europe and rerouting shipments—to reduce reliance on vulnerable U.S. imports, while demand risks, especially among U.S. consumers, remain high‑impact (investing.com)
References
Frequently Asked Questions about Husqvarna CEO says Gulf tensions could drive costs $32 million higher
1How could Middle East turmoil affect Husqvarna's costs?
If the U.S.-Iran war continues, Husqvarna expects up to 300 million Swedish crowns ($32 million) in extra costs due to higher logistics and raw material prices.
2Which costs are most impacted by the Gulf tensions for Husqvarna?
Freight and logistics costs, as well as prices for raw materials like plastics, steel, and aluminium are most impacted.
3How might Husqvarna respond to increased costs?
The company plans to implement further price increases to offset the cost inflation.
4What is the main risk to Husqvarna's outlook in North America?
Weakening consumer demand remains the biggest risk, even if higher costs can be offset.
5How is Husqvarna managing tariff and supply chain risks?
The company is shifting some production from China to Europe and rerouting shipments to reduce tariff exposure.
