Coca-Cola Faces Increased Use of Plastic Bottles Due to Trump Tariffs

The company’s CEO warned that ongoing tariffs could elevate the cost of aluminium, leading to a greater reliance on plastic bottles, which have attracted criticism for contributing to pollution.

Coca-Cola is confronting a potential shift in packaging strategy as President Donald Trump's tariffs on aluminium prompt concern over increased costs associated with using aluminium cans. During a recent investor call, CEO James Quincey indicated that the beverage giant may be compelled to sell more drinks in plastic bottles if the prices of aluminium rise due to the 25% import tax imposed on steel and aluminium.

The decision to consider using greater amounts of plastic comes as the company readjusts its sustainability goals. Last December, Coca-Cola revised its target of incorporating 50% recycled materials in its packaging by 2030 down to 35% to 40% by 2035. This has drawn criticism from environmental advocacy groups, singling out Coca-Cola as the "top global plastic polluter" for six consecutive years.

Quincey emphasized that the company has multiple packaging options available to maintain competitive pricing, stating, "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." Although aluminium cans typically offer a higher recycling rate compared to plastic bottles, their rising costs may prompt a shift in consumer product delivery.

According to the United States Geological Survey, nearly half of the aluminium utilized in the US is imported, and the recent tariffs are expected to amplify the cost of aluminium cans. Following the imposition of tariffs on steel in 2018, many can manufacturers obtained exclusions from these import taxes; however, the current administration has affirmed that no exemptions will apply under the new tariff regime.

Adding further complexity to the environmental landscape, Trump recently signed an executive order that reverses earlier efforts initiated by former President Joe Biden to reduce plastic use, particularly concerning the replacement of plastic straws with paper alternatives. This move is likely to heighten plastic usage and further aggravate global plastic pollution issues.