Trump's aluminum tariff sparks job loss fears and packaging shift
Donald Trump announced a 25 per cent 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 will 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 additionally provides 272,000 jobs in sectors such as mining, construction, and manufacturing.
William Oplinger, CEO of the American aluminum producer Alcoa, warned that the new tariffs could "harm the USA." According to Oplinger, as many as 100,000 people could lose their jobs. Although Alcoa's headquarters are in Pittsburgh, a significant portion of aluminum production takes place in Canada, from where the raw material is then 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 be imported to the United States duty-free.
The importance of Canada for the aluminum market
Canada is the main supplier of aluminum to the USA. According to data from the Department of Commerce, last year, it exported aluminum and aluminum products worth $11 billion to the United States. The American industry heavily relies on aluminum imports because, as a study published in 2022 by the Congressional Research Service reported, production of this raw material in Canada is cheaper due to lower energy costs.
Coca-Cola prepares for changes
If the tariffs are implemented, Coca-Cola CEO James Quincey announced that the company is preparing to transition to plastic and glass packaging to avoid the rising costs of producing aluminum cans. Such a change could threaten jobs at the aluminum can production facilities where Coca-Cola collaborates.
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