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The Trump administration’s moving target import
tariffs have had significant impacts on the US
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supply chain and manufacturing industry.
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While the full impact is still unfolding, it’s
beginning to look like the trade deal tactics
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could do the unthinkable: raise the price of
Arizona iced tea.
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Arizona iced tea has been a shining beacon in
the cooler sections of gas stations and grocery
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stores across the country for decades.
Since 1997,
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the company has sold its tall boys for 99 cents.
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a price point that’s so set it’s actually
printed right on the can.
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But according to the New York Times, the iconic
cost could be in jeopardy.
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Company founder Don Vultaggio told the
publication that Trump’s 50% tariffs on
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aluminum imports could finally force Arizona to
bump up the price on its iced tea.
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Even though 80% of the aluminum used to
manufacture the iced tea tallboys is recycled,
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it still needs to source the other 20% from
Canada.
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The tariffs,
combined with rising costs from domestic
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suppliers, has forced Vultaggio to possibly
reconsider consumer prices.
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He said, quote, I hate even the thought of it.
It would be a hell of a shame after 30+ years.
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Arizona has kept its canned beverage prices so
low for so long,
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partially by adjusting prices on other products,
but also by running a very vertically
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integrated production process.
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That even includes building its own railroad to
bring tankers of sugar direct.
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Into its New Jersey factory, Arizonaland.
As the report points out,
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it also helps that Arizona iced tea primarily
consists of easy-to-get materials like water,
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sugar, and flavorings, but it still needs
aluminum.
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If foreign import tariffs stick around and as
Vultaggio put it,
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American manufacturers gouge the marketplace
because of that protection,
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it could mean the end of 99-cent iced tea.
I’m Ben Munson,
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and this is Manufacturing Now.