Coca-Cola CEO James Quincey has announced that prices for some of the company’s products will be rising, and U.S. President Donald Trump‘s tariffs are partly at fault.
Quincey appeared on CNBC’s “Squawk on the Street” Wednesday explaining that prices for its carbonated drinks products will rise in the coming months.
READ MORE: Here’s how Canada’s new tariffs on U.S. imports could impact your weekly shopping bill
Quincey noted that rising costs of labour is another factor.
WATCH: U.S. tariffs are getting people to buy Canadian
He added that the hike was “pretty unusual” for the company, which also reported its second-quarter results Wednesday.
During the call with investors, Quincey called the tariffs “disruptive” for both customers and the company, the New York Post reported.
Coca-Cola rose 1.7 per cent on the S&P 500 after its quarterly sales and profit beat estimates on strong demand for its Zero Sugar brand and the new version of Diet Coke.
WATCH: How the U.S.- Canada trade war on tariffs is eroding our economic relationship
Trump announced steel and aluminum tariffs on Canada, Mexico and the European Union in May — and it has resulted in retaliatory tariffs.
Canada in particular has announced $16.6 billion worth of retaliatory tariffs against the U.S. on dozens of products.
Coca-Cola isn’t the only company that’s been bumping up prices and citing tariffs.
READ MORE: B.C. restaurants feel the squeeze as Pepsi raises prices due to trade war tariffs
PepsiCo has also issued several statements on the 25 per cent tariffs on steel imports, and 10 per cent tariffs on aluminum imports. The company has warned prices will likely rise, and has sent letters to third-party retailers in Canada warning of coming hikes.
Industry groups have also penned joint letters on the issue.
WATCH: ‘We’ve been very nice to Canada’ — White House reacts to retaliatory tariffs
Beyond food and beverage, the auto industry has also spoken up about how increased costs may be passed on to customers.
Automakers such as General Motors Co. and Toyota Motor Corp. have warned that higher production costs will lead to a loss in jobs, lower wages for workers and higher prices for cars.
A lesser-known impact of the tariffs is a possible jump in condo prices.
READ MORE: Calgary companies warn of price increases due to new tariffs
U.S. tariffs and countermeasures are pushing up material costs for the Canadian construction industry, a BMO economist told Global News earlier this month.
“It’s mainly steel and to a lesser extent aluminium and softwood lumber,” senior economist Sal Guatieri said.
— With files Global News reporters Erica Alini and Jessica Vomerio, Reuters
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