Coca-Cola says that it can use more plastic due to trump tariff
Coca-Cola may have to sell more drinks in plastic bottles in the US if President Donald Trump’s tariff made aluminum compartment more expensive, the company’s chief executive officer, James Quincy said in a call with investors. .
It ordered 25% import tax to enter the US in all steel and aluminum after Trump, which may end Cancelled food price And drink Items in the country.
In December, the beverage company reduced its stability target of using 50% recycled materials in its packaging by 2030, using 35% to 40% by 2035.
Environmental groups have labeled Coca-Cola “Top global plastic pollutants” For six consecutive years.
“If a package withstands some increase in input costs, we will have other packaging offerings that will allow us to compete in the strength,” Quincy said.
“For example, if aluminum cans become more expensive, we can put more emphasis on pet (plastic) bottles”.
Coca-Cola Boss also demanded to reduce the impact of tariffs on its business, stating that packaging is only a small component of his company’s costs.
In recent years, Coca-Cola was selling more products in aluminum containers as part of its marketing and stability strategies.
Generally, despite being more expensive, aluminum cans are also much more recycled than plastic bottles over time.
According to the United States Geological Survey, the use of the US imports about half aluminum, so 25% tariff on all imports makes the cans even more expensive.
Trump first ordered a tariff on steel in 2018, several can-producers won “exclusion” from those import taxes.
But this time, Trump has said that there will be no discount for individual products or for special countries.
In a separate step that is likely to contribute to plastic pollution, Trump signed executive Order Earlier this week, the US government’s effort to replace the plastic straws with paper was abolished.
The order reversed a remedy signed by former President Joe Biden, which called plastic pollution a “crisis”.
