Coca-Cola may increase plastic use amid Trump tariffs
Coca-Cola may increase the use of plastic bottles in the U.S. if new tariffs imposed by former President Donald Trump drive up the cost of aluminium cans, the company’s CEO, James Quincey, said during an investor call. The announcement follows Trump’s decision to implement a 25% import tax on all steel and aluminium entering the country, a move that is expected to make canned food and beverages more expensive.
Coca-Cola CEO James Quincey acknowledged the potential impact of rising aluminium costs due to tariffs but emphasized that the company has alternative packaging options to maintain affordability. If aluminium cans become too expensive, Coca-Cola may increase its use of PET plastic bottles to remain competitive despite fluctuating material costs.
This possible shift comes as Coca-Cola has already reduced its sustainability targets. In December, according to sources, the company revised its goal of using 50% recycled materials in packaging by 2030, lowering it to 35-40% by 2035. This decision has drawn criticism from environmental groups, as Coca-Cola has been named the “top global plastic polluter” for six consecutive years. Increased reliance on plastic bottles could further fuel concerns over environmental impact, highlighting the ongoing tension between economic pressures and sustainability commitments in the beverage industry.
Coca-Cola has increasingly relied on aluminium cans in recent years as part of its sustainability and marketing efforts. While aluminium is more expensive than plastic, it is far more recyclable, making it a preferred choice for eco-conscious packaging. However, with the U.S. importing nearly half of its aluminium supply, a 25% tariff on imports could significantly raise production costs for canned beverages.
When Donald Trump first imposed steel and aluminium tariffs in 2018, many can-makers received exemptions, helping them avoid higher expenses. This time, Trump has stated there will be no exceptions for specific products or countries, making it difficult for businesses to manage the increased costs. As a result, beverage companies like Coca-Cola may have to reconsider their packaging strategies, potentially shifting towards more plastic bottles to offset rising aluminium prices, despite growing concerns over environmental sustainability and plastic pollution.
In addition to economic concerns, Trump recently signed an executive order reversing a U.S. government initiative aimed at replacing plastic straws with paper alternatives. This measure, introduced by former President Joe Biden, was part of an effort to combat plastic pollution, which Biden had described as a significant environmental issue. The reversal signals a policy shift away from previous sustainability efforts.
These changes could lead to an increase in plastic waste, particularly as major beverage companies like Coca-Cola adapt to higher aluminium costs by shifting toward plastic packaging. Environmental advocates have already criticized Coca-Cola for its role in global plastic pollution, and a greater reliance on plastic bottles could further intensify concerns about sustainability and corporate responsibility. As businesses adjust to the new tariffs and regulatory changes, the long-term environmental impact of these decisions remains a pressing issue.
As the tariffs take effect, the long-term impact on Coca-Cola’s packaging choices remains to be seen. However, the company’s acknowledgment that it may turn to more plastic bottles underscores the broader economic and environmental consequences of the new trade policies.