Coca-Cola may increase the use of plastic bottles in the United States if former President Donald Trump’s proposed tariffs drive up the cost of aluminum cans, CEO James Quincey said in an investor call.

The statement follows Trump’s decision to impose a 25% tariff on steel and aluminum imports, a move that could significantly raise the cost of canned food and beverages in the U.S.

In December, the soft drink giant revised its sustainability target, lowering its goal of using 50% recycled materials in packaging by 2030 to 35%-40% by 2035.

Environmental groups have criticized Coca-Cola as the world’s largest plastic polluter for six consecutive years.

“If a type of packaging experiences an increase in raw material costs, we still have alternative packaging options that allow us to remain competitive in affordability,” Quincey stated. “For example, if aluminum cans become more expensive, we may prioritize plastic PET bottles,” he added.

Despite the potential shift, Quincey downplayed the impact of the aluminum tariffs on Coca-Cola’s overall business, emphasizing that packaging represents a relatively small portion of the company’s total costs.

In recent years, Coca-Cola has expanded its use of aluminum cans as part of its marketing and sustainability initiatives. While aluminum cans are generally more expensive, they are also far more recyclable than plastic bottles in the long run.

The U.S. imports nearly half of its aluminum, according to the U.S. Geological Survey. A 25% tariff on all imports is expected to increase can prices, making aluminum packaging more costly.

When Trump first imposed steel tariffs in 2018, many can manufacturers were able to secure exemptions from the import taxes. However, this time, Trump has stated that no exemptions will be granted, neither for specific products nor individual countries.

In a separate move expected to contribute to plastic pollution, Trump signed an executive order this week reversing a U.S. government initiative to replace plastic straws with paper alternatives.

This order overturns a measure signed by former President Joe Biden, who had classified plastic pollution as a “crisis”.