With global trade conflicts heating up and political alliances in flux, US companies are facing a new economic reality of soaring tariffs on imported aluminium.
The 50 per cent tariff, rolled out on June 4, 2025, was intended to shield domestic producers as tensions escalated between Western nations and the BRICS group (Brazil, Russia, India, China, and South Africa). Instead, it has disrupted supply chains, sent costs spiralling, and forced industries like the beverage makers into rapid strategy overhauls.
As per the latest information, the US-based famous iced tea brand, AriZona, has always managed to deal with difficult situations like pandemics, recessions, and wild market swings by not increasing the price of its most famous 99-cent iced tea.
Gearing up for a potential price hike after 33 years
But the ongoing tariff scenario imposed by Donald Trump might be the dent that finally breaks its legendary price tag. Don Vultaggio, founder and chairman of AriZona Beverage Company, told The New York Times that he’s reluctantly weighing a price hike on the brand’s signature tallboy aluminium cans, a move that would break the 99-cent tradition that’s held strong since 1997.
“We’re successful. We’re debt-free. We own everything. Why? Why have people who are having a hard time paying their rent have to pay more for our drink,” exclaimed Don Vultaggio.
The potential price hike is being driven by the Trump administration’s new 50 per cent tariff on aluminium imports from Canada. The brand churns through about 100 million pounds of aluminium each year for its signature cans, with roughly one-fifth (20 per cent) coming from Canada. Founder and Chairman Don Vultaggio told The New York Times that unless a deal is struck to ease the levy with Canada, AriZona may have no choice but to do the unthinkable, which is to raise its price.
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