'We riot': Shock over admission AriZona's 99-cent iced tea may not 'survive' Trump tariffs
AriZona's famously low-priced iced teas may not be around for long, according to company leadership.
The New York Times on Sunday published an article called, "Can AriZona’s 99-Cent Iced Tea Survive Trump’s Tariffs?" in which the outlet notes that "the price has been AriZona’s calling card for nearly three decades," yet Trump's touted "50 percent tariff on imported aluminum may change that."
The report notes that company co-founder Don Vultaggio may not have an option in increasing prices.
"The Trump administration’s 50 percent tariff on aluminum imports may leave him no choice," according to the report. "If the price of a tallboy of AriZona Iced Tea had kept pace with inflation, the company would today be selling it for $1.99. Instead, the 99-cent price remains so central to the company’s identity that the numbers are displayed on the can boldly and prominently."
According to the report, "AriZona uses more than 100 million pounds of aluminum a year for its cans, and about 20 percent of that comes from Canada."
"Mr. Vultaggio is hopeful that the tariff dispute will be resolved, but if it is not, he said, 'at some point the consumer is going to have to pay the price,'" it states.
The report continues:
"'I hate even the thought of it,' Mr. Vultaggio, 73, said, adding, 'It would be a hell of a shame after 30-plus years.'"
Scott Lincicome, the director of general economics and Cato's Herbert A. Stiefel Center for Trade Policy Studies, responded to the admission from the company co-founder by saying, "Trump's aluminum tariffs may force AriZona’s famous 99-Cent Iced Tea to increase in price for the first time in 3 decades."
"If they come for the Costco hotdog meal, we riot," he added.