Coca-Cola faces sustainability challenge as Trump’s aluminum tariffs bite

ATLANTA, GEORGIA: Coca-Cola’s CEO, James Quincey, has warned that the company may be forced to increase its use of plastic bottles in the US market due to the rising costs of aluminum cans caused by President Trump’s 25% import tax on steel and aluminum.

This tariff could lead to a surge in the price of canned goods, making it more challenging for companies like Coca-Cola to maintain their current packaging strategies.

The company had previously been transitioning towards using more aluminum containers as part of its sustainability efforts, but the increased costs may now prompt a shift back towards plastic bottles.

Quincey downplayed the impact of the tariffs, stating that packaging costs are a relatively small component of the company’s overall expenses.

However, this move is likely to be met with criticism from environmental groups, which have previously labeled Coca-Cola as the world’s largest plastic polluter.

The company had recently scaled back its sustainability goals, aiming to use 35-40% recycled materials in its packaging by 2035, rather than its initial target of 50% by 2030.

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The situation is further complicated by the fact that the US imports nearly half of its aluminum, making it heavily reliant on foreign suppliers. The lack of exemptions from the tariffs means that can-makers will be forced to absorb the increased costs, which will likely be passed on to consumers.

In a separate development, President Trump has signed an executive order reversing a previous measure aimed at reducing plastic pollution by replacing plastic straws with paper ones.

This move has been criticized as a step backwards in the fight against plastic waste, which former President Biden had declared a “crisis”. As a result, Coca-Cola’s potential shift towards using more plastic bottles is likely to contribute to the already pressing issue of plastic pollution.