'America's favorite soda is the latest victim of the Trump administration's tariffs.
Coca-Cola (CCE) has hiked prices on its carbonated drinks because the recently enacted 10% 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," he said on the call.'
Coke is raising soda prices because of aluminum tariffs
Sure, it's only going to be a small rise...but this is what tariffs do. They make things more expensive without making the product the slightest bit better.
So the consumer loses.
And again, forget lots of long term jobs. No corporation is going to built a huge, new plant for increased production JUST for a tariff that could end any day.
Trade wars have NEVER worked. Most economists/CEO's know this...unfortunately, Trump doesn't.
Thanks for the laugh. Trump just got the head of the Europeon Union to work towards zero tariffs.
Now what was that about them not working, again?
The losses soybean farmers are suffering from the trade war with China are much greater than any gains they may get from the EU.
There was a committee hearing with Lighthizer on CSPAN last night. The senators had plenty of issues with how tariffs were impacting their states, but Lighthizer had few answers. He said now that his deputies have been confirmed, they will be working on bilateral trade agreements to sell those goods like hardwood and soybeans to East Asia "and others."
I don't get this tariff thing. I thought it was supposed to be so US steel could sell its product for less than foreign importers, and therefore grow/survive. But US steel has raised its prices to match the tariffed commodities, so that's apparently not the plan. Toro says tariffs are meant to raise prices, and give our producers the ability to charge more.
Either way, it's all coming out of the every day consumer's pocket, isn't it?