Watch Out, Texas! Trump’s Tariffs Could Change Your Favorite Soda

HOUSTON, Texas (KPEL News) - There is some concern among companies and consumers alike if President Donald Trump does, in fact, follow through on his proposal to increase tariffs.

One such company weighing a noticeable change in its products is Coca-Cola. Trump's plans to increase tariffs on Canada could have an impact on an iconic part of the company's products - one we often take for granted.

Get our free mobile app

What Are Tariffs?

Tariffs are essentially taxes that a government places on imported goods. When a country imposes a tariff, it raises the cost of those foreign products, making them more expensive for consumers and businesses that rely on them.

The idea is usually to protect domestic industries by making imported goods less competitive compared to what’s produced at home. Sometimes, tariffs are also used as a tool in trade negotiations, pressuring other countries to adjust their policies or level the playing field.

The impact of tariffs depends on how they’re used. In theory, they can help local businesses grow by reducing foreign competition, but they also tend to drive up prices for consumers. If a company relies on imported materials, tariffs can increase production costs, which often get passed down to customers.

On a larger scale, they can spark trade wars—when one country imposes tariffs, others often retaliate, leading to a cycle of economic pushback that can disrupt global markets.

At their core, tariffs are a balancing act. They can provide short-term protection for industries, but they also risk making goods more expensive and limiting economic growth. Whether they help or hurt depends on how they’re applied and how other countries respond.

What Countries Are Being Targeted?

President Donald Trump has named several countries in his tariff proposals. These include China, Mexico, and Canada. But it's the Canada tariffs that could impact Coca-Cola's product line.

Trump's latest plan targets steel and aluminum, which is why Coca-Cola is saying they may need to change up their product line to accommodate. Aluminum is a major part of the soda industry in the United States and worldwide, and Coca-Cola's iconic red can could be hit hard in this latest wave of tariffs.

What Is Coca-Cola Planning?

According to CNBC, the American soda corporation is looking at shifting its focus to more plastic bottles if the aluminum tariff goes into effect. This is according to a statement from CEO James Quincey.

“As it relates to our strategies around ensuring affordability and ensuring consumer demand, if one package suffers some increase in input costs, we continue to have other packaging offerings that will allow us to compete in the affordability space,” Quincey said on the company’s earnings conference call. “For example, if aluminum cans become more expensive, we can put more emphasis on PET [plastic] bottles, etc.,” Quincey added.

In comments he made during a conference call, Quincey did say the company is planning for the possibility but also notes that product packaging is a small cost compared to other parts of production.

“I think we’re in danger of exaggerating the impact of the 25% increase in the aluminum price relative to the total system,” Quincey explained. “It’s not insignificant, but it’s not going to radically change a multibillion-dollar U.S. business, and packaging is only a small component of the total cost structure."

Will Coca-Cola Prices Jump?

Short answer: Probably not.

Longer answer: Aluminum is actually more expensive to use in their packaging, but the metal cans are easier to recycle and cleaner to produce. You likely won't see and cost changes, but there might be more bottles than cans available on your store shelves if the current plans from the Trump administration don't change.