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AriZona’s 99-Cent Promise Under Threat as 50% Aluminum Tariff Takes Hold

Industry suppliers are signaling cost pass-throughs, with trade groups pressing the administration for targeted relief.

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99-cent Arizona iced teas being sold in a convenience store.
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Overview

  • President Trump’s June 3 executive action doubled tariffs on imported aluminum to 50%, sharply raising input costs for U.S. canmakers and beverage producers.
  • Don Vultaggio said AriZona is holding the line on its decades-long 99-cent tall can price but warned it may have to raise it if high aluminum duties persist.
  • The company uses over 100 million pounds of aluminum annually—about 20% imported from Canada—and has relied on efficiency measures to preserve its low-price pledge since the 1990s.
  • AriZona is pursuing cost savings in plastic packaging lines, cutting PET plastic prices on some products and passing those discounts to customers.
  • Can suppliers have begun passing higher costs down the chain, and industry groups like the Can Manufacturers Institute and Aluminum Association are lobbying for tariff exemptions to avert broader consumer price hikes.