Coca-Cola has come out as one of the first few companies who has said that Trump’s recent rise in tariffs has affected the billion dollar company. CEO James Quincy of Coca-Cola told the Wall Street Journal that the company had to raise prices due to cost increases in the middle of the year which was unusual for the company. Quincy said that the increase in steel and aluminum tariffs as the cause of the increase in the drink products but also the rising costs, including freight, metal, and labor were also big factors.
Quincy has admitted on the company’s earnings call on 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.”
CNN Money has said that the increase in the cost of the popular soda and other drinks from the brand would depend on the retailers selling it. The company has said that it’s up to stores to determine whether to raise prices for consumers.
Commerce Secretary Wilbur Ross claimed in March that the proposed aluminum tariffs would have a negligible effect on U.S. customers and that “all this hysteria has a lot to do about nothing.”
Coca-Cola is just one of the companies currently being affected by Trump’s rise in tariffs. Whirlpool’s shares plummeted 14 percent blaming the rising aluminum and steel costs for lackluster earnings. According to CNBC, they tracked statements from corporate companies from in their statements from their earning calls that involved discussions on the new taxes on foreign goods, primarily affecting the industrial sector. “New U.S. tariffs on steel and aluminum, for instance, appear to be sending shock waves throughout the economy with mixed effect.”