AriZona Iced Tea Warns 99-Cent Can May End Under 50% Aluminum Tariff

AriZona Beverages says it may abandon the 99-cent price that has defined its 23-ounce iced-tea cans for nearly three decades if the United States imposes a 50% tariff on imported aluminum. Founder and chairman Don Vultaggio told the New York Times that higher metal costs would make it "a hell of a shame" but increasingly unavoidable to keep absorbing expenses without passing them on to consumers. The company, which sells about two billion cans annually, uses roughly 100 million pounds of aluminum a year, about one-fifth of which is sourced from Canada and would be subject to the levy. Vultaggio warned that domestic suppliers are also likely to raise their prices in response to the trade measure, undermining AriZona’s long-running strategy of eschewing advertising and maintaining a fixed price printed on every can. President Donald Trump argues the tariff will bolster U.S. manufacturing and generate revenue, but beverage makers and other industries that rely on imported metal say it risks fueling inflation for everyday goods. AriZona has not set a new suggested price or a timeline for a decision, but Vultaggio said he hopes the administration will take steps to prevent suppliers from "gouging" before the company is forced to lift the iconic price point.