Coca-Cola CEO James Quincey suggested using more PET plastic bottles if needed to offset President Donald Trump’s 25 percent tariffs of U.S. aluminum imports.

The drinks company imports aluminum for its cans from Canada, which is likely to be hardest hit by a 25% tariff on aluminum.

The beverage giant may shift some product sold in aluminum cans to PET bottles if input costs rise in light of new tariffs, said CEO James Quincey.

The beverage giant is ready to manage, mitigate and adjust to the “dynamic macro environment,” including potential tariffs imposed on steel and aluminum imports into the US and regulatory changes to food ingredients,

Coca-Cola Co. may have to source more PET for its drinks sold in the US in the wake of President Trump’s planned tariff on steel and aluminium imports.

The Trump administration’s new tariff policy will increase the duties on aluminium imports from 10% to 25%, beginning next month. This could lead to increased costs for products sold in aluminium cans, such as Coca-Cola’s popular beverage range.

US President Donald Trump's tariffs on steel and aluminium imports have raised fears of an all-out trade war. US businesses, including Coca-Cola and Ford, are preparing for impacts, such as cost increases and production shifts.