Trump threatens affordable iced tea brand

AriZona Iced Tea, known for selling its signature “Big Can” beverages at just 99 cents for more than three decades, may be forced to raise prices due to President Donald Trump’s decision to double tariffs on aluminum imports. Founder Don Vultaggio said that the president’s move has left the company struggling to absorb costs, forcing him to consider a price increase for the first time, Knewz.com has learned.

AriZona Iced Tea forced to consider raising prices

For years, AriZona Iced Tea has resisted inflationary pressures and rising production costs, keeping its 23-ounce cans at their signature 99-cent price. Last year, Vultaggio said that the company would “fight as hard as we can” to maintain affordability for customers. However, Trump’s latest tariffs threaten that promise. In a recent interview with The New York Times, he admitted, “At some point the consumer is going to have to pay the price. I hate even the thought of it. It would be a hell of a shame after 30-plus years.”

Trump doubles tariffs on imported aluminum and steel

In June, Trump announced he would double tariffs on imported aluminum and steel, raising the rate from 25% to 50%. He argued the step was necessary to protect domestic industries, saying, “I have determined that increasing the previously imposed tariffs will provide greater support to these industries and reduce or eliminate the national security threat posed by imports of steel and aluminum articles and their derivative articles.”

Industry groups warn that higher costs could backfire

The U.S. imports approximately half of the aluminum used domestically, much of which comes from Canada. Industry groups warn that higher costs could backfire. Charles Johnson, president and CEO of The Aluminum Association, said in a statement, “Reestablishing a more level playing field for domestic producers is critical, but a Section 232 tariff of 50 percent threatens to undermine the very industry the administration aims to support. … The Aluminum Association, which represents the full industry supply chain and 70 percent of domestic production, urges the administration to reconsider today’s decision given the negative impact it will have on manufacturers.”

Companies forced to act

AriZona Iced Tea sources around 20% of its aluminum from Canada but has yet to formally raise prices. However, many other companies have already been forced to act. Independent Can, based in Maryland, has raised prices twice in 2025, with CEO Rick Huether telling NBC News that the packaging company has already “absorbed the amount of the tariffs that we can absorb.” Coca-Cola has also signaled price adjustments, as CEO James Quincey told investors in February that aluminum costs could push the company to rely more heavily on plastic bottles to “compete in the affordability space.” Meanwhile, Robert Budway, outgoing president of the Can Manufacturers Institute, warned that the tariffs would “further increase the cost of canned goods at the grocery store” and “put our nation’s food security at risk.”

Lawmakers urge the Trump administration to reconsider

Lawmakers have joined industry leaders in urging the Trump administration to reconsider. Representative Ritchie Torres, a New York Democrat, wrote on X, “Since 1997, AriZona Iced Tea has proudly kept its iconic 99-cent price tag. For the first time in nearly three decades, Trump’s tariffs (effectively a tax on American consumers and businesses) threaten to double that price to $1.99. Trump promised to lower prices. Instead, he’s driving them up.”

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