Coca-Cola Considers Increased Use of Plastics Amid Trump Tariffs

Facing a potential rise in aluminum prices due to tariffs imposed by former President Trump, Coca-Cola may pivot towards using more plastic packaging, raising concerns over environmental impacts.

Coca-Cola's Chief Executive, James Quincey, has indicated that the beverage giant may increase its use of plastic bottles if tariffs on aluminum result in higher production costs for aluminum cans. Following the recent implementation of a 25% import tax on steel and aluminum, Quincey expressed that the company could focus more on PET (polyethylene terephthalate) plastic bottles to remain competitive in pricing during a call with investors. This strategy comes as the company seeks to adapt its operations against the backdrop of rising materials costs.

In December 2022, Coca-Cola adjusted its sustainability goals, reducing its target for recycled materials in packaging from 50% by 2030 to a range of 35% to 40% by 2035. This shift has attracted criticism from environmental advocacy groups, who have consistently labeled Coca-Cola as the leading global plastic polluter for six consecutive years.

Quincey reassured investors that while packaging costs would increase, they represent a minor portion of the overall expenses for Coca-Cola. Previously, the beverage company had moved towards utilizing more aluminum products as part of its marketing strategy aimed at promoting sustainability. Aluminum cans, while typically more expensive to produce than plastic bottles, boast superior recyclability over time, contrasting with the issues surrounding plastic bottle waste.

The United States Geological Survey reports that the US imports nearly half of the aluminum it consumes, meaning the newly imposed tariffs are likely to elevate the prices of cans further. In previous tariff situations, numerous can manufacturers received exemptions, but recent announcements from Trump clarify that there will be no exclusions for any products or states this time around.

Simultaneously, Trump's administration has taken measures that could exacerbate plastic pollution by rescinding an executive order that endorsed the replacement of plastic straws with paper alternatives, reversing the efforts initiated by former President Biden, who referred to plastic pollution as a significant crisis.