Trump's aluminium tariff sparks job fears and packaging shift
Donald Trump has introduced a 25 per cent tariff on imported aluminium. "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 aluminium companies. In response to the president's announcement, Coca-Cola will change the packaging of its products.
According to data from the Aluminium Association, the aluminium industry in the USA directly employs 164,000 people, and additionally provides 272,000 jobs in sectors such as mining, construction, and manufacturing.
William Oplinger, CEO of the American aluminium 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 located in Pittsburgh, a significant portion of aluminium production takes place in Canada, from where the raw material is then exported to the USA.
The company is lobbying the Trump administration for the exemption of Canadian aluminium imports, which would allow two-thirds of the raw material to be imported to the United States duty-free.
The importance of Canada for the aluminium market
Canada is the main supplier of aluminium to the USA. According to data from the Department of Commerce, last year it exported aluminium and aluminium products worth £9 billion to the United States. The American industry heavily relies on aluminium imports because production of this raw material in Canada is cheaper due to lower energy costs - as reported 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 transition to plastic and glass packaging to avoid the rising costs of producing aluminium cans if the tariffs are implemented. Such a change could threaten jobs at the aluminium can production facilities with which Coca-Cola collaborates.
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