Donald Trump’s Tariffs Could Raise Price of AriZona’s Beloved 99-Cent Iced Tea

For more than 30 years, AriZona has sold its 22-ounce iced tea cans for just 99 cents. But that price may soon change.

On June 3, President Donald Trump announced that tariffs on imported aluminum and steel would double, going from 25% to 50%. This change updates an earlier order he signed in February. Tariffs are taxes on imported goods, and they can raise costs for companies that rely on those materials.

AriZona chairman Don Vultaggio told The New York Times on August 10 that the price increase could eventually reach customers. “I hate even thinking about it—it would be a shame after more than 30 years,” he said.

AriZona sells about 2 billion drinks a year, including iced teas, juice cocktails, and energy drinks. They are also well-known for the Arnold Palmer, a mix of iced tea and lemonade.

Vultaggio said the company is holding off on raising prices for now, even though aluminum costs are climbing. “It’s unfair—80% of our can metal comes from recycled U.S. cans, but 100% of our aluminum is still taxed,” he said.

If costs keep going up, the company might have to increase prices, but they’ll try to avoid it. When they find savings, like cheaper plastic bottle production, they pass them on to customers. For example, plastic tallboy cans still sell for $1.

Since launching in 1997, AriZona’s 99-cent tea has survived three U.S. recessions. The company’s success is partly due to its vertical integration—it controls every step of production and distribution. AriZona owns its own rail lines to bring sugar to its New Jersey factory, and it has no outside debt or shareholders to please.

Still, AriZona uses more than 100 million pounds of aluminum each year, and about 20% comes from Canada, which is now hit with the higher tariffs.

Some in the aluminum industry argue that raising tariffs too high could backfire. Charles Johnson, CEO of the Aluminum Association, said in a June 4 press release that while protecting U.S. producers is important, a 50% tariff could harm the very industry it’s meant to help.

President Trump says the higher tariffs will push more businesses to manufacture in the U.S. But Vultaggio isn’t convinced. “If you’re protecting American manufacturers, you can’t let them overcharge just because they’re protected,” he told The Times. “If I could speak directly to Donald Trump, that’s what I’d tell him.”