Coca-Cola may shift towards using more plastic bottles in the U.S. if tariffs imposed by President Donald Trump lead to a significant increase in the cost of aluminium cans, CEO James Quincey told investors in a recent call.
Trump’s recent move to impose a 25% import tax on all steel and aluminium entering the U.S. is expected to drive up costs for canned food and beverage products. As a result, Coca-Cola is exploring alternative packaging options to maintain affordability for consumers.
“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,” Quincey explained. “For example, if aluminium cans become more expensive, we can put more emphasis on PET [plastic] bottles.”
This decision comes as Coca-Cola scales back its sustainability targets. Initially aiming to use 50% recycled materials in its packaging by 2030, the company has now revised that target to between 35% and 40% by 2035. Environmental groups have criticized Coca-Cola for its reliance on plastic, naming it the world’s top plastic polluter for six consecutive years.
Coca-Cola had recently increased its use of aluminium containers as part of a sustainability effort, despite aluminium being more expensive than plastic. However, aluminium cans are significantly more recyclable over time compared to plastic bottles. The U.S. currently imports nearly half of its aluminium, and with a 25% tariff in place, prices are expected to soar.
When Trump imposed steel and aluminium tariffs in 2018, some can-makers managed to secure exemptions. However, the former president has stated that no exemptions will be granted this time, either for specific products or for particular countries. This stance has heightened concerns about potential cost increases across various industries that rely on aluminium packaging.
In a related move, Trump recently signed an executive order reversing a measure from President Joe Biden’s administration that aimed to reduce plastic pollution by replacing plastic straws with paper alternatives. Biden had previously called plastic pollution a “crisis,” but Trump’s reversal signals a shift away from those environmental concerns.
The potential increase in plastic use by Coca-Cola could further contribute to the global plastic waste problem. Environmental activists warn that increased reliance on plastic packaging could have long-term ecological consequences, particularly in oceans and waterways where plastic waste remains a significant issue.
With Trump’s tariffs set to impact manufacturing costs, beverage companies like Coca-Cola are facing tough decisions. Whether this shift leads to an increase in plastic pollution or prompts alternative solutions remains to be seen.
