Coca-Cola CEO says company sees cost pressures from Trump's tariffs
- CEO James Quincey says Coca-Cola is seeing cost pressures from President Trump’s tariffs on steel and aluminum.
- The CEO spoke after Coke reported better-than-expected second-quarter earnings and revenue.
Coca-Cola CEO James Quincey told CNBC on Wednesday the company is seeing cost pressures in part due to President Donald Trump’s tariffs on steel and aluminum.
“We had to take with our bottling partners an increase [in prices] in our sparkling beverage industry in the middle of the year, which is relatively uncommon,” Quincey said on “Squawk on the Street” after Coke reported earnings. “That’s the metal steel and aluminum going up. The labor going up.”
The Trump administration has enacted steel and aluminum tariffs on numerous nations including allies Canada, Mexico and the European Union, which have launched retaliatory measures. That means higher prices, including on cans of soda.
Quincey told CNBC’s Sara Eisen that Coke and its partners are working on ways to grow the business in the new environment.
“The tariffs on the metals, it’s one of many factors [that] cost us to go out in the middle of the year and announce price increase,” he said.
Despite the impact, Quincey said Coke may have a slight advantage over other companies because is its products are made locally.
“We’re very focused on creating local businesses, with local factories, with local jobs, with local blue collar,” he said. “Less trade and more tariffs will mean less economic growth in the end and that will affect us.”
Coke reported better-than-expected second-quarter earnings and revenue Wednesday, bolstered by its efforts to bring its diet drinks around the world.
In the latest quarter, it launched Diet Coke drinks in sleeker bottles and new flavors like Feisty Cherry.
—CNBC’s Lauren Hirsch contributed to this report.
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