Coca-Cola has indicated it might have to rely more on plastic in the United States if Donald Trump’s tariffs lead to higher costs for aluminum cans.

This announcement comes in light of Trump’s implementation of a 25% tariff on imported steel and aluminum, which could increase the prices of canned beverages and foods.

James Quincey, the CEO of Coca-Cola, noted that the company sources aluminum for its cans from Canada and is exploring strategies to offset potential price increases brought about by the tariffs. This may necessitate a shift towards plastic bottles.

Quincey explained to investors, “In terms of our approach to keeping products affordable and maintaining consumer interest, we adapt our packaging solutions based on variations in input costs. If the cost of aluminum cans rises, we can focus more on PET [plastic] bottles, among other options.”

Nevertheless, he downplayed the potential ramifications of the tariffs on Coca-Cola’s overall business, emphasizing that packaging represents a minor portion of total expenses. “We risk overstating the effect of a 25% increase in aluminum prices when viewed through the lens of our entire system,” Quincey mentioned during the earnings call.

“While the impact is not negligible, it won’t fundamentally alter the course of a multibillion-dollar business in the U.S. and packaging is merely one small piece of the overall cost structure.”

Back in 2018, Trump imposed similar tariffs on foreign steel and aluminum imports during his initial term, though many beverage can manufacturers were granted exemptions. This latest round of tariffs will reportedly be applied “without exceptions or exemptions.”

Research indicates that Coca-Cola is among the leading contributors to global plastic pollution, as identified by environmental groups. In pursuit of its sustainability goals, the company has steadily increased the amount of its drinks packaged in aluminum cans in recent years.

In 2023, only 26% of Coca-Cola’s products were packaged in aluminum and steel containers, showing a slight uptick from the previous two years, as noted in the company’s latest sustainability report.

Conversely, nearly half (47.7%) of its beverages were available in plastic bottles that same year.

On a related note, Trump recently signed an executive order reviving plastic straws, reversing a federal directive aimed at replacing them with paper alternatives as part of efforts to reduce single-use plastic consumption.