Coca-Cola may be forced to increase its reliance on plastic bottles if aluminium prices rise due to tariffs set by the Trump administration, raising concerns over environmental impacts.
Coca-Cola Faces Dilemma Over Increased Plastic Use Amid Trump Tariffs
Coca-Cola Faces Dilemma Over Increased Plastic Use Amid Trump Tariffs
Coca-Cola's CEO indicates potential shift from aluminium cans to plastic bottles due to rising tariffs.
Coca-Cola may have to rely more heavily on plastic bottles if President Trump’s 25% tariffs on steel and aluminium lead to increased costs for aluminium cans, CEO James Quincey indicated during a discussion with investors. Following Trump’s tariffs, which impact nearly half of the US aluminium supply, Coca-Cola scaled back its sustainability goals, lowering the target for recycled materials in its packaging from 50% by 2030 to 35-40% by 2035. Critics label Coca-Cola the “top global plastic polluter” for the sixth consecutive year, raising alarms about the environmental ramifications of any transition back to plastic.
Quincey noted that while packaging costs are a minor part of overall expenses, the need for affordability may compel a shift to PET plastic bottles if aluminium prices spike. Historically, Coca-Cola has focused on promoting aluminium as a more sustainable option due to its superior recyclability compared to plastics. However, the looming high tariffs are likely to strain this strategy.
Moreover, just recently, Trump’s administration reversed a previous initiative that sought alternatives to plastic straws, fueling further concerns regarding plastic pollution amid changing regulations. As international tensions and trade policies evolve, the beverage industry faces crucial decisions impacting both their business models and environmental responsibilities.
Quincey noted that while packaging costs are a minor part of overall expenses, the need for affordability may compel a shift to PET plastic bottles if aluminium prices spike. Historically, Coca-Cola has focused on promoting aluminium as a more sustainable option due to its superior recyclability compared to plastics. However, the looming high tariffs are likely to strain this strategy.
Moreover, just recently, Trump’s administration reversed a previous initiative that sought alternatives to plastic straws, fueling further concerns regarding plastic pollution amid changing regulations. As international tensions and trade policies evolve, the beverage industry faces crucial decisions impacting both their business models and environmental responsibilities.
