Coca-Cola Price Hikes: Coca-Cola (NYSE:KO) is the latest victim to announce it must implement measures to deal with the Trump administration’s aluminum tariffs.

And those measures come in the form of price hikes on its soda drinks.

Coca-Cola Price Hikes, What’s Going on?

The result of the aluminum tariff is a 10% tax on imported aluminum which makes Coke cans more expensive to produce. Consequently, a “disruptive but necessary” price hike will be implemented as stated by the Coca-Cola brand CEO James Qunicey.

The announcement came at the company’s earnings call on Wednesday.

Quincey continued:

“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,” 

The Decision is in the Retailers Hands

Coca-Cola has spoken in more detail regarding the price increase, saying that they will vary depending on the retailer. The decision will fall with the stores to determine whether to raise the price for consumers.

So consumers may not have to face putting their hands in their own pockets to accommodate the aluminum tariff, but the shops will if not. 

“We have not commented on specific U.S. price increases, as they vary by channel and by a customer (which is a retailer who sells our products). Also, note that increases are at the customer level. Customers have discretion in what consumers are charged on the shelf.”

>>Trump Tariffs: Who Stands to Benefit?

The Tariffs

Back in February President Trump announced that the U.S. would set a 25% tariff on steel imports and a 10% tariff on aluminum imports. The idea of this was to eliminate international competition and boost U.S. manufacturing.

Despite the announcement, Coca-Cola is on the rise today with stocks at $46.39 at time of writing.

Would you still by a Coca-Cola drink at a higher price if needs be? Don’t we already have many retailers pricing the drink at a higher price anyway – especially pubs and bars anyone?

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