Trump Calls for Cane Sugar Coke: Will You Pay Higher Prices and Soda Tax?

Various Coca-Cola and Coke Zero cans sitting in ice

(Image credit: Getty Images)

"I have been speaking to Coca-Cola about using REAL Cane Sugar in Coke in the United States, and they have agreed to do so...This will be a very good move by them — You'll see. It's just better!"

That was President Donald Trump, in a recent post on his social media platform, touting that Coca-Cola would reportedly introduce an American-made version of its iconic soda sweetened with cane sugar instead of high-fructose corn syrup.

Some versions of Coke already use cane sugar, including Coca-Cola sold in Mexico.

From just $107.88 $24.99 for Kiplinger Personal Finance

Become a smarter, better informed investor. Subscribe from just ~~$107.88~~ $24.99, plus get up to 4 Special Issues

CLICK FOR FREE ISSUE

https://cdn.mos.cms.futurecdn.net/flexiimages/y99mlvgqmn1763972420.png

Sign up for Kiplinger’s Free Newsletters

Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.

Profit and prosper with the best of expert advice - straight to your e-mail.

Coca-Cola has since revealed that it will launch an offering made with U.S. cane sugar as part of its product line.

“This addition is designed to complement the company’s strong core portfolio and offer more choices across occasions and preferences,” Coca-Cola reported in its Q2 2025 earnings release.

Still, the announcement has reignited debates about U.S. sugar policy and, in some cases, soda taxes.

Will consumers bear the costs of Trump’s push for cane sugar Coke? Here’s more of what you need to know.

Cane sugar vs corn syrup: Which is healthier?

The cane sugar Coke debate raises a key question: Why do many U.S. sodas use high-fructose corn syrup (HFCS) instead of cane sugar? Well, it primarily comes down to cost and policy.

Since the 1980s, U.S. rules, tariffs, and quotas have led to cane sugar being more expensive.
Corn is subsidized by the federal government, which helps make HFCS cheaper for soda companies.

Taste-wise, some people say sodas with cane sugar, like “Mexican Coke,” taste cleaner or more natural. Others feel that HFCS-sweetened sodas are slightly sweeter.

But from a health effects perspective, both sweeteners are similar, according to the U.S. Food and Drug Administration (FDA).

Specifically, the food agency reports that cane sugar (sucrose) and HFCS both contain about equal parts glucose and fructose, just arranged differently. On its website, the FDA states:

“We are not aware of any evidence... that there is a difference in safety between foods containing HFCS and those containing similar amounts of other nutritive sweeteners like sucrose.”

Meanwhile, Robert F. Kennedy Jr., Trump's Secretary of the U.S. Department of Health and Human Services, has said that “sugar is poison” when referencing health risks supposedly posed by high-fructose corn syrup.

Kennedy also applauded news that fast-food chain Steak ’n Shake would begin offering Coca-Cola sweetened with real cane sugar instead of corn syrup, tweeting “MAHA is winning” to endorse his so-called “Make America Healthy Again” campaign.

However, the main advice from many nutrition industry experts is to limit added sugars in your diet, regardless of the type.

Will cane sugar Coca-Cola cost more?

Cane sugar generally costs 20% to 40% more than HFCS, according to U.S. Department of Agriculture (USDA) data.

As mentioned, the price difference largely stems from import restrictions, tariffs, and higher production costs for cane sugar compared to subsidized domestic corn used to make HFCS.

Recent data show refined cane sugar priced at over 50 cents per pound. That’s roughly 12% higher than high fructose corn syrup.

Some industry groups explain that cane sugar also requires more processing than HFCS.

For example, the Sugar Association reports that the crystallization and refining process from fibrous cane stalks is energy-demanding, while HFCS production, although complex, is less energy-intensive.

If Coca-Cola were to swap out HFCS for cane sugar even partially, that ingredient cost increase alone could potentially push soda prices up by around 10%. Additional expenses could come from production changes and supply chain adjustments.

Corn Refiners Association President and CEO John Bode said the following in a statement on the organization's website regarding potential product reformulations:

“Replacing high fructose corn syrup with cane sugar doesn’t make sense….[It] would cost thousands of American food manufacturing jobs, depress farm income, and boost imports of foreign sugar, all with no nutritional benefit.”

Note: Coca-Cola has not released specifics regarding the price of any potential cane sugar version of its popular soda in the U.S.

Soda tax adds another layer in some cities

Beyond ingredients, local soda taxes (also known as sweetened beverage taxes) in several U.S. cities, like Philadelphia, Seattle, and Chicago (Cook County), can also impact the total price you pay at the register.

These taxes typically add 1 to 2 cents per ounce or levy extra sales taxes on sugary beverages, regardless of whether sweetened with cane sugar or HFCS. And soda/sweetened beverage taxes don’t change based on which sweetener is listed on the label.

Supporters say city-level soda taxes help curb excessive sugar consumption due to health concerns, like obesity and diabetes.

Data show that purchases of sugary beverages declined, on average 27% due to the levies.
Additionally, some areas reported public health improvements, including weight loss, lower rates of tooth decay and improved pregnancy outcomes.

However, critics argue that soda taxes disproportionately impact working families.

Also, some studies suggest that soda taxes alone may not lead to substantial changes in body mass index (BMI) or obesity prevalence due to factors like consumer substitution to other unhealthy foods and broader lifestyle issues.

Notably, as of 2025, at least three states — Arizona, Michigan, and Washington — have passed laws that specifically ban local governments from imposing new soda taxes.

What all this means for soda lovers

President Trump’s call for cane sugar Coke has sparked some debate about U.S. soda preferences. While the sugar switch resonates with some, the real impact may be felt more in consumers’ wallets than on their taste buds.

Cane sugar tends to be more expensive and could lead to potentially higher costs for consumers. If your goal is health-conscious consumption, many experts say the key is to moderate overall sugar intake, regardless of the sweetener used.

Ultimately, knowing the different factors at play can help empower you to make informed decisions about the sweetened beverages you buy.

Regarding a new Coke product line, the company has suggested that it may be introduced this fall. Stay tuned.

TOPICS

Kelley R. Taylor is the senior tax editor at Kiplinger.com, where she breaks down federal and state tax rules and news to help readers navigate their finances with confidence. A corporate attorney and business journalist with more than 20 years of experience, Kelley has helped taxpayers make sense of shifting U.S. tax law and policy from the Affordable Care Act (ACA) and the Tax Cuts and Jobs Act (TCJA), to SECURE 2.0, the Inflation Reduction Act, and most recently, the 2025 “Big, Beautiful Bill.” She has covered issues ranging from partnerships, carried interest, compensation and benefits, and tax‑exempt organizations to RMDs, capital gains taxes, and energy tax credits. Her award‑winning work has been featured in numerous national and specialty publications.