Coca-Cola CEO James Quincey said Wednesday that the beverage giant will raise prices due to President Donald Trump's tariffs on foreign steel and aluminum.
Despite posting $2.3 billion in profit this past quarter, compared to $1.4 billion the year prior, Quincey said the increased cost to make its bottles and cans will be passed on to consumers.
"We had to take with our bottling partners an increase [in prices] in our sparkling beverage industry in the middle of the year, which is relatively uncommon," Quincey told CNBC. "That's the metal steel and aluminum going up. The labor going up."
Quincey added that increased costs on foreign steel and aluminum cold hurt local businesses Coca-Cola works with.
"We're very focused on creating local businesses, with local factories, with local jobs, with local blue collar," he said. "Less trade and more tariffs will mean less economic growth in the end and that will affect us."
So far, the company has not divulged how much it expects prices will increase.
However, Trump announced on Wednesday that he will eliminate steel and aluminum tariffs on European Union countries after coming to an agreement with EU President Jean-Claude Juncker.
Tariffs on Chinese steel and aluminum are still in place.
This article has been adapted from its original source.
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