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Coca-Cola May Use More Plastic Due to Tariffs

Coca-Cola May Use More Plastic Due to Tariffs Pulse news network
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Atlanta:  Coca-Cola might increase plastic bottle usage in the US if Trump’s tariffs make aluminium cans more expensive.

Company CEO James Quincey discussed the potential impact of tariffs during a recent call with investors.

Trump has imposed a 25% tax on imported steel and aluminium, affecting canned food and drink prices.

The beverage giant had aimed to use 50% recycled materials in packaging by 2030 but revised this goal.

In December, Coca-Cola lowered its target to using 35% to 40% recycled materials by 2035.

Environmental Concerns

For six years, environmental groups have named Coca-Cola the world’s biggest plastic polluter.

Quincey explained that if aluminium can costs rise, the company may focus more on PET plastic bottles.

He emphasized that Coca-Cola offers multiple packaging choices to maintain affordability for consumers.

Packaging costs are a relatively small part of the company’s overall expenses, he added.

Coca-Cola had recently promoted aluminium cans as part of its sustainability and marketing efforts.

Aluminium Impact

Aluminium cans are usually more expensive but are far easier to recycle than plastic bottles.

The US imports nearly half its aluminium, making a 25% tariff likely to increase can prices further.

In 2018, many can manufacturers received exemptions from similar tariffs imposed by Trump.

This time, Trump has ruled out exemptions for specific products or countries, ensuring widespread effects.

Higher aluminium prices could push more beverage companies to use plastic bottles instead.

Policy Reversal

In another move affecting plastic pollution, Trump revoked an initiative to replace plastic straws with paper.

This executive order reversed a policy introduced by former President Joe Biden.

Biden had called plastic pollution a “crisis” and promoted eco-friendly alternatives.

Trump’s decision could lead to increased plastic waste across the country.

Both policies may contribute to long-term environmental concerns and sustainability challenges.

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