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Coca-Cola announced Wednesday that it would increase soft drink prices, and CEO James Quincey attributed some of the blame to the trade war of President Donald Trump. During a profit call that reported better-than-expected results for the second quarter, Quincey incurred "general" cost increases for an impending price hike.
The impact of wholesale price increases in Coca-Cola varies among retailers. said a spokesperson at CNNMoney. But one can expect that the price of a can of Coke at the checkout will increase in most stores.
Speaking to CNBC, Mr. Quincey said of rising prices: "It's the freight, the metals, the steel, the aluminum. , the work that goes up. So there is pressure on costs, we have to pass that on the market.
Quincey cited the new rates as one of the causes of rising costs. "The tariffs on metals, it's one of the many factors [that] have made us come out in the middle of the year and announce price increases, which is rather unusual." More directly, Quincey was referring to a tariff of 10% aluminum imported from the EU, Canada and Mexico, with a 25% tariff on steel imports.
Trump also imposed substantial tariffs on China, and retaliatory tariffs imposed by China and other countries have serious repercussions on farmers and ranchers, including: hinder pork exports and lower the price of US soybeans.
However, there are also warning signs that Trump's aggressive tactics may still pay off in the long run. Wednesday, Trump and the President of the European Commission, Jean-Claude Juncker, pledged to work towards the elimination of all tariffs on the US. trade in industrial products, excluding automobiles.
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