Trump Plans to Roll Back Steel and Aluminum Tariffs
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 24 2026
0mins
Should l Buy KO?
Source: Yahoo Finance
- Tariff Adjustment Impact: President Trump's potential rollback of tariffs on imported aluminum cans and steel appliances, which were raised from 25% to 50% last June, could alleviate cost pressures on consumer products, fostering a recovery in the consumer goods market.
- Coca-Cola's Challenges: While Coca-Cola is not directly impacted by aluminum tariffs, its bottling partners face rising costs, which may lead to increased wholesale prices, affecting Coca-Cola's global sales and margins, and forcing it to push for more PET bottle usage.
- Constellation Brands' Opportunity: With nearly 40% of its beer shipments from Mexico in aluminum cans, a reduction in tariffs would ease pricing pressures for Constellation Brands, helping it regain market attractiveness amid declining consumption among younger consumers.
- Market Reaction Expectations: Should Trump successfully lower tariffs, both Coca-Cola and Constellation Brands' stocks are expected to benefit, potentially attracting investor interest and enhancing their performance in a competitive consumer goods market.
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Analyst Views on KO
Wall Street analysts forecast KO stock price to fall
14 Analyst Rating
13 Buy
1 Hold
0 Sell
Strong Buy
Current: 79.340
Low
71.00
Averages
79.33
High
85.00
Current: 79.340
Low
71.00
Averages
79.33
High
85.00
About KO
The Coca-Cola Company is a beverage company. The Company's segments include Europe, Middle East and Africa; Latin America; North America; Asia Pacific; Global Ventures; and Bottling Investments. It sells multiple brands across several beverage categories worldwide. Its portfolio of sparkling soft drink brands includes Coca-Cola, Sprite and Fanta. Its water, sports, coffee and tea brands include Dasani, smartwater, vitaminwater, Topo Chico, BODYARMOR, Powerade, Costa, Georgia, Fuze Tea, Gold Peak and Ayataka. Its juice, value-added dairy and plant-based beverage brands include Minute Maid, Simply, innocent, Del Valle, fairlife and AdeS. It operates in two lines of business: concentrate operations and finished product operations. Its concentrate operations sell beverage concentrates, syrups, including fountain syrups, and certain finished beverages to authorized bottling operations. Its finished product operations sell sparkling soft drinks and a variety of other finished beverages.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Berkshire Hathaway Enters New Era Post-Buffett Retirement
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- Expansion of 'Forever' Holdings: In his first letter to shareholders, Abel announced the inclusion of Moody's and Apple into Berkshire's 'forever' holdings, with Moody's being the third-longest-held stock since 2000, boasting a 41% annual yield, showcasing its resilience in economic fluctuations.
- Valuation Considerations for Apple: While Abel considers Apple a long-term investment, the decision raises eyebrows given Buffett's sale of 75% of Berkshire's Apple shares prior to retirement, especially with Apple's current P/E ratio at 33.4, reflecting a commitment to value investing.
- Impact of Share Buybacks: Since 2013, Apple has repurchased over $841 billion in shares, reducing its outstanding shares by 44%, a strategy that has significantly boosted earnings per share, indicating that Abel's decisions may influence Berkshire's stake in Apple, reflecting sensitivity to market dynamics.
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See More
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- Stable Revenue Growth: In 2025, Coca-Cola's organic revenue rose by 5%, with expectations of 4%-5% growth in 2026, while analysts predict a 7%-8% increase in adjusted EPS for 2025, demonstrating resilience in a competitive market.
- S&P Global's Steady Performance: S&P Global has raised dividends for 53 consecutive years, and although it offers a lower forward yield of 0.9%, it provides essential financial data and credit ratings to Fortune 500 companies, maintaining stable growth even during economic fluctuations, with adjusted EPS expected to grow by 9%-10% in 2026.
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- American Express Membership Growth: American Express added 2.9 million new credit cards in Q4 2025, with 65% from millennials and Gen Z, leading to a 10% increase in both revenue and earnings per share, highlighting its successful transformation and adaptability to younger consumers.
- Coca-Cola's Resilient Performance: Coca-Cola achieved a 5% organic revenue growth in Q4 2025 and a 23% increase in earnings per share for the full year, with its strong brand and efficient global distribution network ensuring continued success in challenging environments.
- Portfolio Stability: Buffett maintained Apple, American Express, and Coca-Cola as core holdings in his portfolio, accounting for 20%, 15%, and 10% respectively, underscoring the long-term value and strategic significance of these stocks for Berkshire Hathaway.
See More
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- Fresh Food Expansion: The company will expand the square footage dedicated to fresh foods, planning to double the space in over half of its remodeled stores, aiming to attract more customers for one-stop shopping.
- Beauty Product Upgrade: Target will launch a 'Beauty Studio' in over 600 stores, replacing its partnership with Ulta Beauty, focusing on prestige beauty brands to attract younger consumers and boost sales.
- Home Goods Reconstruction: With home goods sales declining nearly 7% year-over-year, Target plans to rebuild the display area for these products over the next few years, expecting to redesign 75% of its home decor items to regain market competitiveness.
See More
Berkshire Hathaway Enters New Era Post-Buffett Retirement
- New CEO Transition: With Warren Buffett retiring on December 31, Greg Abel officially took over the day-to-day operations and the $319 billion investment portfolio of Berkshire Hathaway on January 1, marking a significant governance shift, as Abel vows to uphold Buffett's investment philosophy.
- Expansion of 'Forever' Holdings: In his first letter to shareholders, Abel announced the inclusion of Moody's and Apple into Berkshire's 'forever' holdings, with Moody's being the third-longest-held stock since 2000, boasting a 41% annual yield, showcasing its resilience in economic fluctuations.
- Valuation Considerations for Apple: While Abel considers Apple a long-term investment, the decision raises eyebrows given Buffett's sale of 75% of Berkshire's Apple shares prior to retirement, especially with Apple's current P/E ratio at 33.4, reflecting a commitment to value investing.
- Impact of Share Buybacks: Since 2013, Apple has repurchased over $841 billion in shares, reducing its outstanding shares by 44%, a strategy that has significantly boosted earnings per share, indicating that Abel's decisions may influence Berkshire's stake in Apple, reflecting sensitivity to market dynamics.
See More
Coca-Cola and S&P Global's Dividend Growth Potential
- Coca-Cola's Stability: Coca-Cola has raised its dividends for 64 consecutive years, and despite a decline in global beverage consumption, it has diversified its product portfolio and maintained a capital-light business model, achieving a 5% organic revenue growth in 2025, with a forecasted growth of 4%-5% in 2026, demonstrating strong cash flow and ongoing dividend payment capacity.
- Dividend Yield and Valuation: With a current dividend yield of 2.6% and a low payout ratio of 67%, Coca-Cola has ample room to increase dividends in the future; at a stock price of $78, it trades at a reasonable P/E ratio of 24, making it suitable for long-term holding.
- S&P Global's Resilience: S&P Global has raised its dividends for 53 consecutive years, and although its yield is only 0.9%, its stable growth in financial data and analytics services allows it to weather economic fluctuations, with adjusted EPS growing 14% in 2025 and expected growth of 9%-10% in 2026.
- Business Restructuring and Future Outlook: S&P Global plans to spin off its automotive data business later this year to streamline operations and enhance profitability; with a current stock price of $448 and a P/E ratio of 23, it presents an attractive option for investors seeking stability.
See More
Coca-Cola and S&P Global's Investment Potential
- Coca-Cola's Cash Flow Advantage: Coca-Cola's capital-light business model has enabled it to raise dividends for 64 consecutive years, currently offering a forward yield of 2.6%, and its low payout ratio of 67% indicates strong future dividend growth potential, effectively countering market pressures despite declining soda consumption globally.
- Stable Revenue Growth: In 2025, Coca-Cola's organic revenue rose by 5%, with expectations of 4%-5% growth in 2026, while analysts predict a 7%-8% increase in adjusted EPS for 2025, demonstrating resilience in a competitive market.
- S&P Global's Steady Performance: S&P Global has raised dividends for 53 consecutive years, and although it offers a lower forward yield of 0.9%, it provides essential financial data and credit ratings to Fortune 500 companies, maintaining stable growth even during economic fluctuations, with adjusted EPS expected to grow by 9%-10% in 2026.
- Business Optimization and Future Outlook: S&P Global plans to spin off its automotive data business this year to streamline operations and enhance profitability, and its low payout ratio of 26% provides ample room for future dividend increases, showcasing its strong adaptability in uncertain markets.
See More
Growth Potential of Apple, Coca-Cola, and American Express
- Apple Sales Surge: Apple's iPhone revenue increased by 23% year-over-year, demonstrating strong sales momentum in a competitive smartphone market, highlighting the appeal of its ecosystem and customer loyalty, which is expected to continue driving revenue growth.
- American Express Youthful Transformation: American Express added 2.9 million new credit cards in Q4 2025, with 65% coming from millennials and Gen Z, indicating the company's success in attracting younger consumers and laying the groundwork for future double-digit growth.
- Coca-Cola's Stable Dividends: Coca-Cola achieved a 5% organic revenue growth in Q4 2025 and has raised its dividend for 63 consecutive years, currently yielding 2.6%, providing investors with reliable passive income and protection during market volatility.
- Buffett's Investment Strategy: Although Greg Abel has taken over as CEO of Berkshire Hathaway, Warren Buffett's portfolio still centers around Apple, American Express, and Coca-Cola, underscoring the significance and stability of these stocks in long-term investments.
See More
Buffett's Legacy: Investment Strategies in Apple, Coca-Cola, and American Express
- Apple's Ecosystem Advantage: Apple's iPhone revenue surged 23% year-over-year during the holiday season, showcasing its robust ecosystem that encourages continuous purchases and upgrades, thereby driving stable revenue growth and maintaining market leadership despite fierce competition.
- American Express Membership Growth: American Express added 2.9 million new credit cards in Q4 2025, with 65% from millennials and Gen Z, leading to a 10% increase in both revenue and earnings per share, highlighting its successful transformation and adaptability to younger consumers.
- Coca-Cola's Resilient Performance: Coca-Cola achieved a 5% organic revenue growth in Q4 2025 and a 23% increase in earnings per share for the full year, with its strong brand and efficient global distribution network ensuring continued success in challenging environments.
- Portfolio Stability: Buffett maintained Apple, American Express, and Coca-Cola as core holdings in his portfolio, accounting for 20%, 15%, and 10% respectively, underscoring the long-term value and strategic significance of these stocks for Berkshire Hathaway.
See More
Target Revamps Merchandise Strategy to Attract Shoppers
- Merchandise Strategy Overhaul: Target plans to revamp its merchandise strategy over the next year, expecting net sales to rise about 2% compared to last year, addressing the challenge of four consecutive quarters of declining customer traffic.
- Fresh Food Expansion: The company will expand the square footage dedicated to fresh foods, planning to double the space in over half of its remodeled stores, aiming to attract more customers for one-stop shopping.
- Beauty Product Upgrade: Target will launch a 'Beauty Studio' in over 600 stores, replacing its partnership with Ulta Beauty, focusing on prestige beauty brands to attract younger consumers and boost sales.
- Home Goods Reconstruction: With home goods sales declining nearly 7% year-over-year, Target plans to rebuild the display area for these products over the next few years, expecting to redesign 75% of its home decor items to regain market competitiveness.
See More
