Coca-Cola said it would have to shift more packaging from aluminium cans to plastic bottles as a result of President Donald Trump’s tariffs.

Trump increased the tariff on all aluminium and steel imports to the US from 10% to 25%.

The aluminium industry has already warned that the country does not have enough smelting capacity to keep up with demand.

CEO James Quincey said: “As it relates to our strategies around ensuring affordability and ensuring consumer demand, if one package suffers some increase in input costs, we continue to have other packaging offerings that will allow us to compete in the affordability space.

“For example, if aluminium cans become more expensive, we can put more emphasis on PET [plastic] bottles, etc.”

Quincy also went on to downplay the financial impact that the 25% tariff would have on Coca-Cola’s finances.

He added: “I think we’re in danger of exaggerating the impact of the 25% increase in the aluminium price relative to the total system.

“It’s not insignificant, but it’s not going to radically change a multibillion-dollar U.S. business, and packaging is only a small component of the total cost structure.”