International/ Business: Coca-Cola’s plastic dilemma: Tariffs threaten sustainability goals
President Donald Trump’s 25% tariff on aluminum imports is forcing Coca-Cola to rethink its packaging strategy. The beverage giant, which has long relied on aluminum cans as a more sustainable option, may now shift focus to plastic bottles to keep costs down.
CEO James Quincey hinted at this possibility during a recent investor call, stating, “If aluminum cans become more expensive, we can put more emphasis on PET bottles.”
This potential pivot comes at a time when Coca-Cola is already under fire for its environmental impact.
For six straight years, the company has been labeled the world’s top plastic polluter. Its recent decision to scale back recycled packaging goals—from 50% by 2030 to 35-40% by 2035—has only fueled criticism. A move toward plastic bottles could further damage its sustainability image.
The tariff, intended to bolster U.S. aluminum production, could significantly raise costs for canned beverages. With nearly half of the country’s aluminum supply imported, the price hike is inevitable.
While Coca-Cola insists packaging costs are a small part of its expenses, the shift to plastic reflects a broader tension between economic pressures and environmental responsibility.
Adding to the plastic pollution concerns, Trump recently reversed a Biden-era policy aimed at replacing plastic straws with paper alternatives.
As Coca-Cola navigates these challenges, its decisions will have far-reaching implications for both the industry and the planet.
The question remains: Can the company balance affordability with its commitment to sustainability?
