For more than 30 years, AriZona Iced Tea has refused to budge from its iconic 99-cent tallboy price tag. But founder and CEO Don Vultaggio said recent White House trade policies might finally force his hand.
Featured VideoThe change would mark the first increase in the drink’s cost since the early 1990s. Although inflation and supply costs have long threatened the price, the company has absorbed those pressures for decades. Now, a spike in aluminum tariffs is creating a challenge that could be too big to ignore.
Why AriZona’s 99-cent era might be ending
In June, President Donald Trump doubled tariffs on imported aluminum and steel to 50 percent, up from the 25 percent rate announced in February. AriZona imports about 20 percent of its aluminum from Canada, meaning the policy could sharply raise production costs.
AdvertisementVultaggio told the New York Times he “hated even the thought” of a price increase, calling it “a hell of a shame after 30-plus years.” But he warned that “at some point the consumer is going to have to pay the price.” He has long held the believe that the company makes enough money without needing to increase profit margins and make people unable to afford their drink.
Industry groups have voiced similar concerns. The Aluminum Association argued that while the policy aims to support domestic producers, a tariff this steep could hurt the very sectors it intends to protect. Charles Johnson, the association’s president, urged the administration to reconsider, citing the damage to manufacturers.
Other warnings included issues of food security being at risk, as well as a shift toward more plastic containers over canned.
AdvertisementWhat people are saying online
Reaction online has been a mix of annoyance and confusion. Some seemed to think that the potential rise in prices was from false claims that manufacturing isn’t done in the United States.
@mattdreeves pointed out the common misconception of who pays tariffs on imported goods. He said, “It’s almost like tariffs don’t benefit the consumer who will ultimately pay the cost here.”
AdvertisementCongressman Ritchie Torres (@RitchieTorres) weighed in, writing 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,” Torres ended his tweet.
Others shared their frustration over the price change that has been a staple for decades.
Advertisement“My grandma said that when the price of Arizona tea goes up is when the Antichrist would show up somewhere in Nebraska,” tweeted @foxenflask.
@FameINJ noted, “Trump really about to make this man fold after holding pricing down for so long smh.”
“Life won’t be worth it when AriZona Iced Tea costs more than $0.99,” one fan shared.
AdvertisementThere were also those shocked to discover that the tallboys are priced lower directly on the cans than where they buy them.
AriZona has not announced an official increase yet. Still, it joins a growing list of companies saying the tariffs could push them to raise prices. Independent Can, a Maryland-based manufacturer, has already upped its prices twice this year, saying it could no longer absorb the costs.
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