Coca Cola Warns Trump Tariffs May Force Increased Plastic Usage in United States

The beverage giant Coca-Cola has indicated it might need to escalate its plastic usage in the United States if Donald Trump’s proposed tariffs lead to heightened aluminium can costs. This strategic shift comes in response to Trump’s implementation of 25% tariffs on foreign steel and aluminium imports to the US market, potentially triggering price increases across the canned food and beverage sector.

Chief Executive James Quincey emphasised the company’s pragmatic approach to maintaining affordability amidst rising input costs. The organisation, which sources aluminium for its beverage cans from Canada, is actively exploring cost mitigation strategies. “If aluminium cans become more expensive, we can shift our emphasis towards PET plastic bottles,” Quincey explained during an investor briefing.

Whilst attempting to minimise concerns about the tariffs’ overall impact, Quincey highlighted that packaging represents only a modest portion of total operational costs. “The 25% increase in aluminium pricing should be viewed in proportion to our multibillion-dollar US operations,” he stated during the company’s earnings call.

The timing of this potential shift raises environmental concerns, given Coca-Cola’s current standing as one of the world’s leading contributors to plastic waste. Recent company data reveals that 47.7% of its beverages were distributed in plastic bottles during 2023, while only 26% utilised aluminium and steel containers.

This development coincides with Trump’s executive order reinstating plastic drinking straws, effectively reversing a previous government directive aimed at transitioning federal purchases away from single-use plastics. The confluence of these policy changes potentially signals a significant setback for corporate sustainability initiatives in the beverage sector.