Coca-Cola may use more plastic bottles due to Trump tariffs
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Coca‑Cola’s chief executive, James Quincey, has suggested that the company might increase its reliance on plastic bottle packaging in the United States if rising costs make aluminium cans less financially viable. Quincey noted that President Trump’s recent 25% import tax on all steel and aluminium could drive up the price of these materials, thereby impacting the cost of canned food and beverages in the US – a market where nearly half of the aluminium is imported.
“Should input costs for one type of packaging rise, we can lean on our other offerings to remain competitive,” Quincey explained. He specifically pointed out that if aluminium cans become more expensive, Coca‑Cola could shift focus to PET plastic bottles, which might help maintain affordability even if overall packaging expenses increase. Quincey also emphasised that packaging represents only a small part of the company’s total costs, downplaying any major impact on the business.
This potential packaging change comes on the heels of a strategic change announced late last year. Coca‑Cola scaled back its sustainability goal, originally set to use 50% recycled materials in packaging by 2030, to now aim for a target of 35% to 40% recycled content by 2035. This has added fuel to longstanding criticism from environmental groups that have for years branded the beverage giant as a top contributor to global plastic pollution.
Notably, this possible shift toward plastic contradicts Coca‑Cola’s recent marketing efforts, which have rightly highlighted aluminium packaging for its higher recyclability. Despite aluminium’s environmental advantages over plastic in the long run, the new tariffs threaten to impact the cost-benefit analysis, prompting a reassessment of packaging strategies while sustainability remains a paramount issue.
President Trump recently signed an executive order that reversed a government initiative to replace plastic straws with paper – a move that could further exacerbate plastic waste challenges.
With these evolving dynamics – from international trade policies to shifting sustainability benchmarks – Coca‑Cola is preparing to adapt its packaging. Whether this will lead to a broader use of plastic bottles remains to be seen, but the company appears ready to adjust its approach to keep pace with both market pressures and regulatory changes.