Coca-Cola announced on Wednesday that it will increase carbonated drinks prices, and CEO James Quincey has blamed part of President Donald Trump's trade war. During a profit distribution that reported better-than-expected second-quarter results, Quincey blamed "broad" cost increases for an impending price hike.
The impact of Coca-Cola's wholesale price increases on soda retail prices varies by trader, CNNMoney spokesman said. But the price of a can of Coke at checkout is likely to rise in most stores.
Speaking to CNBC, Quincey said of the price increase, "This is the freight, these are the metals, the steel, the aluminum work is going up, so there is cost pressure we need to put on the market."
Quincey called new tariffs as a cause of rising costs. "The tariffs on the metals, that's one of many factors [that] caused us to go out in the middle of the year and announce the price increase, which is quite unusual." Directly on the Quincy, a 1
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Trump has also imposed substantial tariffs on China, and retaliatory tariffs imposed by China and other countries have serious implications on farmers and ranchers, including through inhibiting pig exports and US soybean price inflation
However, there are also signs that Trump's aggressive tactics may still pay off in the long run. On Wednesday, Trump and European Commission President Jean-Claude Juncker pledged to eliminate all tariffs on E.U.U.S. Trade in manufactured goods, except automobiles.