(Article by James J. Costa, COO, Sneakz Organic LLC USA | SEP Solution Engineering, China)

Why Your Kid’s Cola Costs More (and What It Says About Groceries)

 

Over my life, one of my favorite drinks has always been a full-flavored cola, especially on a scorching summer day. For me, nothing beats an ice-cold Pepsi made with real cane sugar when I can find it. I’ve never enjoyed diet, “light,” or “zero” versions—those deliver a short, artificial sweetness but never the satisfying mouthfeel or lasting taste I associate with a real cola. To me, a soft drink should be a “fun for you” experience.

With that in mind, I want to explain—at the most basic level—what tariffs mean to the foods and beverages we all rely on. Too much attention has been placed on cars, phones, and high-tech goods. But for most Americans, cost escalation begins and ends with the shopping cart. It’s not steel imports or AI chips that shape our daily lives—it’s the price of cola, snacks, and groceries at Walmart. Tariffs function like a “quasi-national sales tax,” and the burden falls on every household.

To make this clear, let’s use one simple product—cola—to illustrate how tariffs directly impact what we pay at checkout.

The Key Ingredients in Cola

A cola beverage requires a carefully crafted mix of flavors, acids, carbonation, and sweeteners—many of which are tied to global supply chains. Common ingredients include:

1. Carbonated Water

2. High Fructose Corn Syrup (HFCS) or Cane Sugar

3. Cola Flavor Blends

4. Caffeine

5. Phosphoric Acid

6. Natural and Artificial Flavors

7. Coloring Agents (such as caramel color)

8. Citric Acid and other acidifiers

9. Preservatives (e.g., sodium benzoate)

10. Gum Arabic

Now let’s break down where these ingredients come from and how tariffs affect them:

1. Carbonated Water

The water itself isn’t imported, but the carbonation equipment often is—primarily from Europe. Tariffs on this machinery can add 10–20% to production costs, discouraging companies from upgrading equipment and holding back innovation.

2. Sweeteners

High Fructose Corn Syrup (HFCS):
Mostly produced domestically from U.S. corn, HFCS has historically faced little or no tariff impact. However, recent changes could push tariffs toward 15%, raising costs.

Cane Sugar:
Many cola makers are moving back to cane sugar because of consumer demand for more “natural” products. But tariffs matter here:

• Brazil: Tariffs recently jumped from ~20% to 50%, affecting both cane sugar and orange juice (most U.S. orange juice comes from Brazil, not Florida). Coffee imports are also being hit, raising U.S. consumer prices by 15%.

• Mexico: Tariffs, once negligible under USMCA, are now closer to 15%.

• India: Tariffs up to 40% limit competitiveness, making India an impractical supplier to the U.S.

3. Cola Flavors

The signature taste of cola comes from cinnamon, nutmeg, vanilla, and citrus oils. Many of these are imported:

• Vanilla (Mexico, Madagascar): Tariffs rising from 0–5% to ~15%.

• Citrus Oils (Argentina, Brazil, Mexico): Once ~5–10%, now facing 15% or more.

4. Caffeine

Sourced from coffee beans, tea leaves, or synthesized chemicals. Tariffs on coffee imports have increased from 0–7% to as high as 25% depending on the source country.

5. Phosphoric Acid

Historically around 0–6% tariff; now closer to 20%, especially for imports from China.

6. Natural & Artificial Flavors

Previously 0–5%, these now face tariffs of 15–25%, depending on classification and origin.

7. Coloring Agents

Caramel color and other coloring agents, often from Europe, are now subject to 15–25% tariffs.

8. Citric Acid & Other Acidifiers

Once low-tariff imports, now generally taxed at 15–20%.

9. Preservatives (Sodium Benzoate)

Historically 2–5%, now facing similar hikes.

The Bigger Picture

Tariffs and trade agreements have a direct, measurable impact on the cost of cola—and by extension, almost every item in the grocery store. What once faced tariffs of 0–7% is now being taxed at 15–25%, with some categories (like Brazil’s sugar and orange juice) hit by a staggering 50%.

This isn’t just about soda. It’s about the shopping cart. Tariffs raise input costs, manufacturers pass them on, and consumers feel the squeeze. Inflation, for most families, isn’t measured in Wall Street indexes—it’s seen at the Walmart checkout line.

Conclusion

Cola is just one example, but it illustrates how tariffs ripple through everyday products. The most irrational case is Brazil, where we had a trade surplus, yet U.S. consumers are now penalized with a 50% tariff because of political favoritism.

These policies act as a hidden national sales tax. Unless checked, the costs will keep climbing as inventories run out and price hikes cascade through the food system. Congress must restore oversight and ensure trade policy is set by experts who understand its impact on ordinary Americans.

Until then, the “fun for you” experience of enjoying a simple cola will serve as a bitter reminder of how tariffs touch us all.

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