Coca-Cola's chief executive, James Quincey, indicated during an investor call that the company might resort to more plastic bottles if President Trump’s tariffs on aluminum make cans too expensive. As part of the recent trade measures, Trump implemented a 25% import tax on all steel and aluminum entering the United States, which is expected to raise the prices of canned beverages and food products across the nation.
In December, Coca-Cola revised its sustainability initiative, scaling back its aim of using 50% recycled materials in packaging by 2030 to a target of just 35% to 40% by 2035. This decision drew criticism from environmental activists, who have labeled Coca-Cola as the "top global plastic polluter" for six consecutive years.
Quincey stated, "If one package suffers some increase in input costs, we continue to have other packaging offerings that will allow us to compete in the affordability space." Specifically, he mentioned that a rise in aluminum costs could lead to an increased focus on using PET plastic bottles instead.
Despite past efforts to market aluminum containers as a sustainable choice—given their recyclability—Coca-Cola may now redirect its packaging strategy to remain competitive. While packaging expenses generally constitute only a small part of the company’s overall costs, the import taxes could significantly affect how Coca-Cola produces its drinks.
The U.S. is heavily dependent on aluminum imports, receiving nearly half of its supply from abroad, and the new tariffs are expected to exacerbate the rising prices of aluminum cans. Under previous tariffs from 2018, some can manufacturers secured exemptions, but the current administration has indicated that there will be no exclusions granted for either products or particular countries under the existing rules.
Adding to concerns about plastic waste, Trump has also recently signed an executive order that reverses the previous administration's initiative to phase out plastic straws in favor of biodegradable alternatives. The former President Joe Biden had classified plastic pollution as a national crisis, which contrasts sharply with the current direction being taken at the federal level.
