Donald Trump’s aluminium tariffs have already started showing colours in the end user segment. After a series of can makers, automakers and construction companies expressing concern over cost increase and possible price increase on consumers, now is the turn for Coca-Cola, one of the most iconic American beverage brands to announce a price rise in the domestic market to compensate for the tariffs on imported aluminium.
On Thursday, Coca-Cola CEO James Quincey told The Wall Street Journal that the company will raise prices of its products on increasing costs for shipping and metal driven by duties of $50 billion on the metal imported from China.
“There is some broad-based push on input costs that have kind of come in and affected ours and many other industries as well,” Quincey said.
Quincey also expressed the same opinion in an interview with CNBC on Wednesday. He added that the price rise in the middle of the year is “relatively uncommon”, but necessary to cover the extra cost in metal, shipping (covered in Midwest Premiums) and tin packaging are getting more expensive.
“That’s the freight, that’s the metals, the steel, the aluminium going up, the labour going up,” Quincey added.
He talked about the cost pressure the company is going through and insisted that the price hike was obligatory. He also said the he is confident about the customer’s reaction as they are well aware of the circumstances in the market.
“The general cost inputs, the tariffs on the metals—it is one of many factors—forced us to go out in the middle of the year with our bottling partners and announce a price increase, which is pretty unusual, but it was the right thing to do for the business,” he concluded.
A number of beer makers also announced their plan to increase prices to cover up the extra cost of canning.
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