Trump Considers Rolling Back Steel and Aluminum Tariffs
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6 days ago
0mins
Source: Fool
- Tariff Adjustment Impact: President Trump is considering rolling back tariffs on imported steel and aluminum, which were raised from 25% to 50% last June, directly affecting the cost structures of consumer goods companies like Coca-Cola and Constellation Brands.
- Coca-Cola's Response Strategy: While Coca-Cola is not directly impacted by aluminum tariffs, its bottling partners face higher costs, likely leading to increased wholesale prices that could slow global sales and profit margins, prompting Coca-Cola to push for more PET bottle usage.
- Constellation Brands' Challenges: Nearly 40% of Constellation's beer shipments come in aluminum cans from Mexico, and reducing tariffs would alleviate pricing pressures in the U.S. market, especially as beer consumption declines among younger consumers.
- Market Outlook: If Trump successfully lowers tariffs, it would create a more favorable market environment for both Coca-Cola and Constellation Brands, improving their financial performance and boosting investor confidence amid current economic pressures.
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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: 81.560
Low
71.00
Averages
79.33
High
85.00
Current: 81.560
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.
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