In light of the recent announcement of 25 percent tariffs on steel and aluminum imports by the Trump administration, various industries in the U.S. are preparing for the impact on their production processes. The soda makers, breweries, and automakers are all bracing themselves for the changes that these tariffs will bring.

President Trump has emphasized the importance of domestic production of steel and aluminum, stating that these materials should be made in America rather than in foreign countries. Unlike previous policies, these tariffs do not exempt key trading partners such as Canada and Mexico.

The response from Canada, the largest supplier of steel and aluminum to the U.S., has been one of opposition. Prime Minister Justin Trudeau has called the measures “entirely unjustified,” and Mexico and the European Union have also expressed concerns and intentions to retaliate.

As companies look for ways to navigate the trade barriers, Coca-Cola is considering shifting towards manufacturing more soft drinks in plastic bottles rather than aluminum cans in response to the tariffs. CEO James Quincey mentioned that if aluminum cans become more expensive, they can focus more on bottles. Despite these potential packaging changes, Quincey assured analysts that the core U.S. business of Coca-Cola will remain stable.

The Brewers Association, representing craft brewers in the U.S., has highlighted the significance of aluminum and steel for breweries. With a large portion of craft beer packaged in aluminum cans, any price increases due to tariffs could have a significant impact on the industry.

CEOs of leading car companies in America are also expressing concerns over the potential disruption caused by the tariffs. The impact on costs and supply chains could create chaos in the industry. While Ford primarily sources materials domestically, the interconnected nature of global supply chains means that the tariffs could still have adverse effects.

Overall, the impending tariffs on steel and aluminum imports are causing ripple effects across various industries in the U.S. Companies are strategizing and preparing for the changes that these tariffs will bring, with a focus on maintaining stability and navigating the complexities of the trade barriers.