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Coca-Cola said it may have to increase its reliance on plastic bottles in the US as president Donald Trump’s proposed tariffs push up the price of aluminium, the company's CEO, James Quincey, said in its latest earnings call.

The concerns come after Trump imposed a 25% tariff on all imported steel and aluminium, a move that could drive up the cost of canned food and drinks across the US. The tariff is set to take effect on 12 March, potentially making aluminium cans considerably more expensive and forcing beverage companies to seek alternative packaging solutions.

A shift towards plastic bottles could further complicate Coca-Cola’s sustainability goals. In December, the company quietly dropped its target for recycled materials in packaging, lowering its ambition from 50% recycled content by 2030 to a revised goal of 35-40% by 2035.

"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 told investors.

"So for example, if aluminium cans become more expensive, we can put more emphasis on PET [plastic] bottles, etc."

However, the Coca-Cola chief also downplayed the potential impact of tariffs on the business, emphasising that packaging represents only a small share of total costs.

"I think we're in danger of exaggerating the impact of the 25% increase in the aluminum price relative to the total system," he said.

"It's not insignificant, but it's not going to radically change a multibillion dollar US business. And packaging is only a small component of the total cost structure."

In 2018, during his first term in the office, Trump imposed tariffs on foreign steel and aluminium imports, although many beverage manufacturers were granted exemptions. This time, however, he has made it clear that the tariffs will be enforced "without exceptions or exemptions."

In other news, on Tuesday, 11 February, Trump signed an executive order to bring back plastic drinking straws, reversing a US government rule to replace them with paper straws as part of efforts to cut back on single-use plastics. “It’s a ridiculous situation. We’re going back to plastic straws,” Trump told reporters at the White House while signing the order.