Coke Prices To Increase Due To Aluminum Tariffs
Coca-Cola (KO) plans to hike price of its carbonated soft drinks as cost of production will increase due to US President Donald Trump's recently implemented 10% tariff on imported aluminum.
RyanMcGuire/ Pixabay
CEO James Quincey admitted on the company's earnings call Wednesday that the hike was "disruptive" but necessary, according to CNN.
"Obviously, while [customers] may understand the cost pressures that are out there on freight, on the increases in steel and aluminum and other input costs that affect the bottling system and affects some of our finished products, clearly, these conversations are difficult," he said on the call.
Earlier this month, the U.S. imposed 25 percent tariffs on $34 billion of Chinese imports, effectively sparking a trade war. Beijing retaliated by imposing similar duties on U.S. goods. Trump later threatened to impose tariffs on all $500 billion in imports from China.
Trump has imposed tariffs on imported steel and aluminum entering the country from Mexico, China and the European Union.
Trump claims that the trade between US and China "has been very unfair, for a very long time. This situation is no longer sustainable." (dpa)
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