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Trump Aluminum Tariff Threatens AriZona’s 99¢ Iced Tea Price

The 50% aluminum tariff has ballooned AriZona’s can-making costs, potentially ending the 99¢ price that has defined the brand since 1997.

Don Vultaggio, Chairperson of the Arizona Beverage Company, attends AriZona Iced Tea's "AriZonaLand" Grand Opening on September 19, 2024 in Edison, New Jersey.
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Don Vultaggio, founder and chairperson of the Arizona Beverage Company, attends AriZona Iced Tea's "AriZonaLand" Grand Opening on September 19, 2024 in Edison, New Jersey.
Arizona Iced Tea

Overview

  • President Trump’s June decision to double Section 232 aluminum tariffs to 50% has sharply increased costs for U.S. beverage can makers.
  • AriZona co-founder Don Vultaggio warned the higher metal prices could force the first price hike on the 99¢ tallboy can in over 30 years.
  • The company relies on about 100 million pounds of aluminum annually, roughly 20% of which is imported from Canada and now subject to the new levy.
  • Major suppliers such as Independent Can have already passed tariff-driven price increases along the supply chain.
  • Industry groups including the Aluminum Association and the Can Manufacturers Institute are lobbying the White House for targeted exemptions to prevent consumer price hikes.