Coca-Cola raises prices on Trump's favorite drink over tariffs

Coca-Cola has hiked prices on its carbonated drinks because President Donald Trump’s 10 percent tariff on imported aluminum has made cans for Coke and other sodas more expensive to make.

The price boost for Coke, which Trump loudly ordered during a secretly recorded conversation with his former personal attorney Michael Cohen, was “disruptive” but necessary given the extra cost of the tariffs, Coca-Cola CEO James Quigley said. Specific increases will depend on individual stores, a company spokesman told CNN Money

This increase is just one of a number of price hikes on goods ― including boats, motorcycles, campers, furniture and beer ― bringing the high cost of the tariffs home to American consumers.

“We’ve had to go to the market a bit more frequently and a bit more aggressively with some price increases as of late,” Michael Happe, CEO of recreational-vehicle manufacturer Winnebago Industries, told The Wall Street Journal.

Although Happe wouldn’t provide specifics on Winnebago price hikes, he said the company remains concerned about the tariffs, a murky future in trade tensions and increasing inflation.

“Uncertainty is never a great thing for the economy and the more noise there is there’s a risk that consumers will press pause,” he said.

18 PHOTOS
Impact of Trump's proposed steel and aluminum tariffs
See Gallery
Impact of Trump's proposed steel and aluminum tariffs
NEW YORK, NY - MARCH 1: A trader is comforted by a coworker as they work on the floor of the New York Stock Exchange (NYSE) on March 1, 2018 in New York City. Major stock indexes plunged Thursday afternoon following President Trump's announcement that he was imposing a 25 percent tariff on imported steel and 10 percent on aluminum. Investor concern about the news rattled the Dow Jones industrial average, which closed down more than 400 points. (Photo by Eduardo Munoz Alvarez/Getty Images)
SAN FRANCISCO, CA - MARCH 02: Wine in aluminum cans is displayed on a shelf at Ales Unlimited on March 2, 2018 in San Francisco, California. Beverage companies that use aluminum for canned drinks are concerned that tariffs proposed by US President Donald Trump could result in higher prices for consumers and job cuts across the industry. (Photo by Justin Sullivan/Getty Images)
U.S. President Donald Trump announces that the United States will impose tariffs of 25 percent on steel imports and 10 percent on imported aluminum during a meeting at the White House in Washington, U.S., March 1, 2018. REUTERS/Kevin Lamarque
Members of trade unions hold a protest against US President Donal Trump's import surcharge on Brazilian steel and in defense of their employment, outside the US Consulate in Sao Paulo, Brazil, on March 5, 2018. Since announcing last week plans to impose a 25 percent tariff on steel imports and 10 percent on aluminium, Trump has shrugged off threats from many nations, including China, Canada, Brazil and Mexico among others. / AFP PHOTO / Miguel SCHINCARIOL (Photo credit should read MIGUEL SCHINCARIOL/AFP/Getty Images)
SAN FRANCISCO, CA - MARCH 02: Beer in aluminum cans is displayed on a shelf at Ales Unlimited on March 2, 2018 in San Francisco, California. Beverage companies that use aluminum for canned drinks are concerned that tariffs proposed by US President Donald Trump could result in higher prices for consumers and job cuts across the industry. (Photo by Justin Sullivan/Getty Images)
White House Chief of Staff John Kelly and press secretary Sarah Sanders listen as U.S. President Donald Trump announces that the United States will impose tariffs of 25 percent on steel imports and 10 percent on imported aluminum during a meeting at the White House in Washington, U.S., March 1, 2018. REUTERS/Kevin Lamarque
NEW YORK, NY - MARCH 1: Traders work on the floor of the New York Stock Exchange (NYSE) on March 1, 2018 in New York City. Major stock indexes plunged Thursday afternoon following President Trump's announcement that he was imposing a 25 percent tariff on imported steel and 10 percent on aluminum. Investor concern about the news rattled the Dow Jones industrial average, which closed down more than 400 points. (Photo by Eduardo Munoz Alvarez/Getty Images)
Members of trade unions hold a protest against US President Donal Trump's import surcharge on Brazilian steel and in defense of their employment, outside the US Consulate in Sao Paulo, Brazil, on March 5, 2018. Since announcing last week plans to impose a 25 percent tariff on steel imports and 10 percent on aluminium, Trump has shrugged off threats from many nations, including China, Canada, Brazil and Mexico among others. / AFP PHOTO / Miguel SCHINCARIOL (Photo credit should read MIGUEL SCHINCARIOL/AFP/Getty Images)
Chairman, CEO and president of Nucor John Ferriola and U.S. Steel CEO Dave Burritt flank U.S. President Donald Trump as he announces that the United States will impose tariffs of 25 percent on steel imports and 10 percent on imported aluminum during a meeting at the White House in Washington, U.S., March 1, 2018. REUTERS/Kevin Lamarque
NEW YORK, NY - MARCH 1: A trader works on the floor of the New York Stock Exchange (NYSE) on March 1, 2018 in New York City. Major stock indexes plunged Thursday afternoon following President Trump's announcement that he was imposing a 25 percent tariff on imported steel and 10 percent on aluminum. Investor concern about the news rattled the Dow Jones industrial average, which closed down more than 400 points. (Photo by Eduardo Munoz Alvarez/Getty Images)
SAN FRANCISCO, CA - MARCH 02: Wine in aluminum cans is displayed on a shelf at Ales Unlimited on March 2, 2018 in San Francisco, California. Beverage companies that use aluminum for canned drinks are concerned that tariffs proposed by US President Donald Trump could result in higher prices for consumers and job cuts across the industry. (Photo by Justin Sullivan/Getty Images)
NEW YORK, NY - MARCH 1: Traders work on the floor of the New York Stock Exchange (NYSE) on March 1, 2018 in New York City. Major stock indexes plunged Thursday afternoon following President Trump's announcement that he was imposing a 25 percent tariff on imported steel and 10 percent on aluminum. Investor concern about the news rattled the Dow Jones industrial average, which closed down more than 400 points. (Photo by Eduardo Munoz Alvarez/Getty Images)
Pacific Coast Producers president and CEO Dan Vincent stands in his cooperative's distribution center in Lodi, California, U.S., April 27, 2018. Picture taken April 27, 2018. To match Insight USA-TRUMP/TARIFFS-CANS REUTERS/Noah Berger
An employee uses a crane as he prepares to move a steel pipe at the SAW Pipe Mills, operated by Liberty Commodities Ltd., in Hartlepool, U.K., on Thursday, June 14, 2018. Steel and aluminum�tariffs�imposed by the U.S. in March may already be filtering through to prices charged by American producers of the metals. Photographer: Chris Ratcliffe/Bloomberg via Getty Images
An employee passes a stack of steel pipes at the SAW Pipe Mills, operated by Liberty Commodities Ltd., in Hartlepool, U.K., on Thursday, June 14, 2018. Steel and aluminum�tariffs�imposed by the U.S. in March may already be filtering through to prices charged by American producers of the metals. Photographer: Chris Ratcliffe/Bloomberg via Getty Images
A steel pipe enters a cleaning machine at the SAW Pipe Mills, operated by Liberty Commodities Ltd., in Hartlepool, U.K., on Thursday, June 14, 2018. Steel and aluminum�tariffs�imposed by the U.S. in March may already be filtering through to prices charged by American producers of the metals. Photographer: Chris Ratcliffe/Bloomberg via Getty Images
Identification stencils hang above steel pipes at the SAW Pipe Mills, operated by Liberty Commodities Ltd., in Hartlepool, U.K., on Thursday, June 14, 2018. Steel and aluminum�tariffs�imposed by the U.S. in March may already be filtering through to prices charged by American producers of the metals. Photographer: Chris Ratcliffe/Bloomberg via Getty Images
Sheet steel sits stacked in the store room at the SAW Pipe Mills, operated by Liberty Commodities Ltd., in Hartlepool, U.K., on Thursday, June 14, 2018. Steel and aluminum�tariffs�imposed by the U.S. in March may already be filtering through to prices charged by American producers of the metals. Photographer: Chris Ratcliffe/Bloomberg via Getty Images
HIDE CAPTION
SHOW CAPTION
of
SEE ALL
BACK TO SLIDE

According to the Labor Department, consumer prices rose 2.9 percent in June from a year earlier, the highest rate in more than six years. Producer prices have also climbed to the highest level in years.

In a CNBC interview last March, Commerce Secretary Wilbur Ross held up a Coke, a Budweiser and a can of Campbell’s soup in a bid to make the point that tariffs are “nothing” and that consumers wouldn’t notice. He predicted the price of a can of soup would increase about “six-tenths of a cent,” adding: “Who in the world is going to be too bothered by six-tenths of a cent?”

The Beer Institute, a trade group representing beer producers, estimated that the aluminum tariff would cost brewers $348 million and could lead to the loss of more than 20,000 jobs in the industry.

On Sunday, Charles Koch, libertarian megadonor to Republicans, attacked Trump’s “protectionist” tariffs that he said destroy businesses and threaten another recession.

  • This article originally appeared on HuffPost.
Read Full Story