Donald Trump's 10% tariffs on aluminum are turning up the price on his favorite drink, Diet Coke, and all the other products Coca-Cola distributes. CEO James Quincey said that the increase was unavoidable because of the higher cost of cans.
Clearly, it's disruptive for us. It's disruptive for our customers but I think the conversations have been about how is this going to work for each and every customer.
But people need not feel too sorry for the Coca-Cola company. They are projected to earn $7.6 billion in revenue this year.
Sodas aren't the only beverages to feel the squeeze; 60% of beer is made with aluminum cans, and the effects could be felt by consumers. Already Sam Adams says they will be increasing prices by up to 2%.
Some folks weren't buying the need to raise the cost of Coke.
It takes about 16 cents worth of aluminum to make a can and a 10% tariff was imposed to raise the cost of the can to a whole 17.6 cents. Coke is raising prices in general and blaming it on tariffs.— Charles Painter (@TweetN4ABeatN) July 27, 2018
Others felt the price increase wasn't such a bad thing.
Diabetics beware! You may no longer be able to afford to be sick.— Kyrin Betts (@KyrinBetts) July 27, 2018
Of course we all need to do our part to help the wealthy.
Perhaps the multi-billion dollar soda and beer companies could take a tiny profit loss to keep from raising prices for consumers.