Coca-Cola may increase its use of plastic bottles in the U.S. due to the potential impact of proposed aluminium tariffs, CEO James Quincey told investors in a recent earnings call.
The tariffs, announced by former President Donald Trump, would impose a 25% duty on imported steel and aluminium, potentially driving up costs for beverage cans. The policy is set to take effect on March 12, putting pressure on companies reliant on aluminium packaging.
Quincey indicated that Coca-Cola could adjust its packaging strategy to mitigate cost increases, including shifting production toward PET plastic bottles. He downplayed the overall impact of the tariffs, stating that packaging remains a relatively small portion of the company’s total costs.
The move comes as Coca-Cola scales back its sustainability targets. In December, the company revised its goal for recycled content in packaging, lowering it from 50% by 2030 to 35-40% by 2035.
Trump previously imposed similar tariffs in 2018, though many beverage companies received exemptions. This time, he has vowed to enforce the policy without exceptions.