Coca-Cola may increase its use of plastic bottles in the US due to President Donald Trump’s tariffs, which have imposed a 25% import tax on all steel and aluminium entering the country. The move could raise the cost of aluminium cans, prompting the beverage giant to shift towards plastic packaging.
Speaking to investors, Coca-Cola CEO James Quincey explained that the company has alternative packaging options to mitigate rising costs. “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. “For example, if aluminium cans become more expensive, we can put more emphasis on PET [plastic] bottles.”
In December, Coca-Cola revised its sustainability goal, lowering its target of using 50% recycled materials in packaging by 2030 to a range of 35%-40% by 2035. Environmental groups have criticized the company, labeling it the “top global plastic polluter” for six consecutive years.
Coca-Cola had been increasing its use of aluminium containers in recent years as part of its sustainability efforts. Despite their higher cost, aluminium cans are significantly more recyclable than plastic bottles. However, the US imports nearly half of its aluminium, and the new tariffs are expected to drive up prices further. Unlike the 2018 tariffs, which allowed for exclusions, Trump has declared that there will be no exemptions this time, neither for specific products nor for particular countries.
Adding to environmental concerns, Trump recently signed an executive order reversing a Biden-era initiative aimed at replacing plastic straws with paper alternatives. The decision counters efforts to address plastic pollution, which Biden had previously described as a “crisis.”
With the cost of aluminium rising and government policies shifting, Coca-Cola’s packaging decisions may have significant environmental and economic implications in the coming years.
