Watch CBS News

Coca-Cola Raising Prices Because Of Aluminum Tariffs

NEW YORK (CNN Money) - America's favorite soda is the latest victim of the Trump administration's tariffs. Coca-Cola has hiked up the prices of its carbonated drinks because the recently enacted 10 percent tariff on imported aluminum has made Coke cans more expensive to produce.

CEO James Quincey admitted on the company's earnings call Wednesday that the hike was "disruptive," but necessary.

"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," Quincey said.

A Coca-Cola spokesperson added that the increases will vary based on individual retailers. The company said that it is up to the stores to determine whether or not to raise the prices for consumers.

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

Back in March, commerce secretary Wilbur Ross said that the aluminum tariff is "a lot to do about nothing," and that U.S. customers would not notice much difference.

(© Copyright 2018 Cable News Network, Inc., a Time Warner Company. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

View CBS News In
CBS News App Open
Chrome Safari Continue
Be the first to know
Get browser notifications for breaking news, live events, and exclusive reporting.