United States: Coca-Cola may be pushed to increase its use of plastic bottles in the US if the 25 percent import tariffs on aluminium lead to higher costs for aluminium cans, CEO James Quincey warned during a call with investors.
The tariffs, raised under President Donald Trump’s trade policies, are expected to drive up the cost of canned beverages, which could impact Coca-Cola’s pricing strategies. While the company has traditionally embraced aluminium cans for their recyclability, the price hikes could push it to shift to less expensive plastic bottles to maintain affordability.
This move comes on the heels of Coca-Cola scaling back its sustainability goals, lowering its mark for using recycled materials in packaging from 50 percent by 2030 to 35 percent-40 percent by 2035. The company, criticised for being the “top global plastic polluter” for six consecutive years, now faces the stress of balancing cost, sustainability, and consumer expectations.
Despite the tariff-induced shift, Quincey guaranteed investors that packaging costs remain a small portion of Coca-Cola’s overall expenses. However, the looming price growth for aluminium could compel the company to review its long-standing commitment to using more eco-friendly cans.
The US, which imports nearly half of its aluminium, is unlikely to see tariff exemptions this time, as President Trump’s administration has verified no exceptions for specific products or countries. This tariff, coupled with the administration’s recent move to switch an executive order promoting the replacement of plastic straws with paper, raises concerns about escalating plastic pollution.
As the situation develops, Coca-Cola’s ability to guide the growing cost pressures while responding to environmental concerns will be closely watched.
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