Trump's aluminum tariffs threaten 100k jobs and Coca-Cola plans
Donald Trump announced a 25-percent tariff on imported aluminum. "This is bad for the aluminum industry in the U.S. It's bad for American workers," warned William Oplinger, CEO of one of the largest American aluminum companies. In response to the president's announcement, Coca-Cola plans to change the packaging of its products.
According to data from the Aluminum Association, the aluminum industry directly employs 164,000 people in the USA and creates an additional 272,000 jobs in sectors such as mining, construction, and manufacturing.
William Oplinger, CEO of the American aluminum producer Alcoa, cautioned that the new tariffs could "harm the USA." He noted that up to 100,000 people could lose their jobs. Although Alcoa's headquarters are in Pittsburgh, a significant portion of aluminum production occurs in Canada, where the raw material is exported to the USA.
The company is lobbying the Trump administration for an exception for Canadian aluminum imports, allowing two-thirds of the raw material to enter the United States duty-free.
The importance of Canada for the aluminum market
Canada is the leading supplier of aluminum to the USA. According to data from the Department of Commerce, it exported aluminum and aluminum products worth $11 billion to the United States last year. The American industry heavily relies on aluminum imports because production in Canada is cheaper, owing to lower energy costs—a fact highlighted in a study published in 2022 by the Congressional Research Service.
Coca-Cola prepares for changes
Coca-Cola CEO James Quincey announced that the company is preparing for a shift to plastic and glass packaging to offset the rising costs of aluminum cans if the tariffs are enacted. Such a change could threaten jobs at the aluminum can production facilities with which Coca-Cola partners.
Read also:
