Coca-Cola has announced it may shift towards using more plastic bottles in the US if President Donald Trump’s tariffs make aluminium cans too expensive. Speaking to investors, the company’s CEO, James Quincey, explained that the 25% import tax on steel and aluminium ordered by Trump could significantly raise the cost of canned beverages.
The tariffs, which apply to all steel and aluminium entering the US, are expected to impact the prices of various canned food and drink products. Quincey noted that Coca-Cola may need to adjust by focusing more on plastic packaging if aluminium prices increase. “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,” he said. Specifically, the company may emphasize PET (plastic) bottles if aluminium becomes too costly.
This move comes after Coca-Cola recently scaled back its sustainability target of using 50% recycled materials in packaging by 2030, lowering the goal to 35-40% by 2035. The shift could attract criticism, as Coca-Cola has been named the “top global plastic polluter” by environmental groups for six consecutive years.
While aluminium cans are generally more expensive than plastic, they are also more recyclable, contributing to Coca-Cola’s marketing and sustainability efforts in recent years. However, the new tariffs could hinder these efforts, as the US imports nearly half of its aluminium, according to the United States Geological Survey. A 25% tariff on all imports could make aluminium cans significantly pricier.
In 2018, when Trump first imposed steel tariffs, some can manufacturers received exemptions. This time, however, Trump has stated that no exclusions will be granted, either for individual products or countries.
In a separate decision that may further impact plastic pollution, Trump recently signed an executive order reversing a measure introduced by former President Joe Biden. The original order aimed to replace plastic straws with paper alternatives in government operations, with Biden labeling plastic pollution as a “crisis.” Trump’s reversal of the measure is likely to increase plastic waste across the country.
