To understand the evolution of premium cigar tariffs across the main exporters of cigars to the United States, the U.S. trade policy framework shifted through four distinct legal and administrative phases:
- The International Emergency Economic Powers Act (IEEPA) framework “Reciprocal Tariffs” (April 5, 2025 – February 20, 2026): Emergency tariffs imposed under a declared national crisis. They were struck down as unauthorized by the Supreme Court on February 20, 2026, and officially expired on February 24, 2026.
- Section 122 Temporary Tariffs (February 24, 2026 – July 24, 2026): A global 10% ad valorem surcharge implemented for exactly 150 days to protect the U.S. balance of payments. This acted as a temporary bridge while the administration pursued long-term options.
- Section 301 Forced Labor Tariffs (Effective Late July 2026): Initiated on March 12, 2026, finalized via Presidential Memorandum on July 23, 2026. These imposed long-term tariffs of 10% or 12.5% ad valorem on over 60 economies based on their forced labor enforcement frameworks.
- Pending “Section 301 Probe into Structural Excess Capacity and Production in Manufacturing Sectors” investigations (Initiated March 12, 2026): Separate, ongoing investigations into 16 economies for broader structural practices like government subsidies, state-owned enterprises, and currency practices (frequently associated with industrial “overcapacity”). These remain pending with no tariff rates established yet.
Country-by-Country Tariff Overview
Current Active Tariff Rates
| Country | Current (Aug. 1, 2026) Duty Rate |
| Honduras | 10% |
| Dominican Republic | 12.50% |
| Nicaragua | 12.50% |
| Costa Rica | 12.50% |
| Mexico | 10% |
| Ecuador | 10% |
| Cameroon | 12.50% |
Dominican Republic
As a dominant exporter of premium cigars to the United States, the Dominican Republic was heavily impacted by the initial wave of emergency trade restrictions. Under the IEEPA reciprocal tariff framework, Dominican imports were subject to a 10% duty from April 5, 2025, through February 20, 2026. Although these measures officially ceased on February 24, 2026, following their invalidation by the Supreme Court, they were immediately replaced by a 10% temporary Section 122 global surcharge. This subsequent Section 122 tariff remained active for its maximum statutory duration of 150 days before expiring on July 24, 2026.
In the next phase of enforcement, the Dominican Republic was included into the Section 301 forced labor investigation initiated on March 12, 2026. Following the USTR’s review, they issued a directive on July 23, 2026, imposing a long-term 12.5% Section 301 ad valorem tariff on Dominican goods. Therefore, its premium cigars (HTSUS 2402.10.80.00) saw their duties increase from 10% to 12.5% in late July 2026.
The Dominican Republic is not subject to the separate, pending Section 301 Structural Excess Capacity investigations initiated by USTR on March 12, 2026. Those investigations examine government subsidies, state-supported enterprises, and other policies alleged to contribute to industrial overcapacity.
Nicaragua
Under the initial trade regime, Nicaragua’s premium cigar industry was subjected to the most severe emergency penalties. From April 5, 2025, to February 20, 2026, a high 18% IEEPA reciprocal tariff was imposed on Nicaraguan cigars. Following the Supreme Court’s decision to strike down these tariffs, the rate was reduced to a global 10% ad valorem surcharge under Section 122, which remained in effect from February 24, 2026, until it expired on July 24, 2026.
As the policy transitioned toward a long-term trade framework, Nicaragua became the subject of a Section 301 forced labor probe initiated on March 12, 2026. The USTR’s final review determined that Nicaragua failed to qualify for exemptions or a lower-tier rating, prompting a presidential directive on July 23, 2026, that levied a 12.5% Section 301 ad valorem tariff. This action established a long-term 12.5% duty rate for Nicaraguan premium cigars.
Nicaragua is not subject to the separate, pending Section 301 Structural Excess Capacity investigations initiated by USTR on March 12, 2026.
Honduras
Honduras’s premium cigar trade has experienced a highly active and shifting tariff history. It was initially subject to a 10% IEEPA reciprocal trade from April 5, 2025 to February 20, 2026. Following the Supreme Court’s ruling and the subsequent expiration of IEEPA duties, Honduran cigars immediately transitioned to the temporary 10% Section 122 global surcharge from February 24, 2026 until July 24, 2026.
However, Honduras was included in the Section 301 forced labor investigation on March 12, 2026. Following the review, USTR recommended a lower-tier rate, and on July 23, 2026, the USTR directed a 10% Section 301 tariff for Honduran goods. This allowed their premium cigars to maintain a 10% duty rate under HTSUS 2402.10.80.00.
Honduras is not subject to the separate, pending Section 301 Structural Excess Capacity investigations initiated by USTR on March 12, 2026.
Costa Rica
Costa Rica was initially subjected to the baseline 10% reciprocal tariff, which escalated to 15% under an Executive Order on August 7, 2025. Later, when the Section 122 tariff took effect on February 24, 2026, Costa Rican cigars were assessed the 10% global surcharge until its expiration on July 24, 2026, because CAFTA-DR does not provide exemptions for Section 122 emergency duties.
Subsequently, Costa Rica was included in the Section 301 forced labor investigation launched on March 12, 2026. As a result, it was assessed the 12.5% Section 301 tariff under the July 23, 2026 Presidential Memorandum.
Costa Rica is not subject to the separate, pending Section 301 Structural Excess Capacity investigations initiated by USTR on March 12, 2026.
Mexico
Under the United States–Mexico–Canada Agreement (USMCA), qualifying premium cigars traditionally entered the United States duty-free. Unlike several CAFTA-DR countries, however, Mexico was subject to multiple U.S. emergency trade measures during 2025 and 2026. Although USMCA preserved preferential tariff treatment for originating USMCA compliant goods under normal customs rules, Mexico remained subject to broader presidential trade actions adopted under separate statutory authorities.
Beginning on February 24, 2026, Mexican premium cigars became subject to the 10% temporary import surcharge imposed under Section 122 of the Trade Act of 1974, which remained in effect until July 24, 2026. The Section 122 surcharge functioned as a temporary balance-of-payments measure and operated independently of USMCA’s preferential tariff provisions unless specifically exempted by the implementing proclamation.In addition, Mexico was included in the Section 301 forced labor investigations, which culminated in country-specific measures announced in July 2026 that set a 10% tariff rate.
Mexico is one of the economies subject to the pending Section 301 Structural Excess Capacity investigations, initiated on March 12, 2026, final decision is pending.
Ecuador
Ecuadorian premium cigars historically entered the U.S. market under the applicable MFN tariff framework but they were also subject to the baseline 10% IEEPA reciprocal tariff implemented in April 2025. Subsequently, it rose to 15% on August 7, 2025, under Executive Order 14326. Later, Ecuadorian imports were subject to the temporary 10% global surcharge imposed under Section 122 of the Trade Act of 1974 from February 24, 2026, through July 24, 2026.
To strengthen bilateral economic ties and mitigate trade barriers, the United States and Ecuador established a reciprocal trade framework in March 2026. Following USTR verification of Ecuador’s enforcement of its import bans on forced labor, a permanent 10% Section 301 tariff took effect upon the expiration of the 10% surcharge, while historical exemptions for agricultural products continue to be maintained.
Unlike Mexico, Ecuador is not subject to the separate, pending Section 301 Structural Excess Capacity investigations initiated by USTR on March 12, 2026.
Cameroon
Cameroon was initially impacted by the implementation of a baseline of 10% reciprocal tariff between April and August 2025. This rate was subsequently formalized at 15% following the issuance of Executive Order 14326 on August 7, 2025.
In February 2026, the legal landscape shifted when the Supreme Court invalidated the reciprocal tariffs authorized under IEEPA. In response, the administration transitioned to a 10% temporary Section 122 global surcharge to maintain trade restrictions.
Upon the expiration of the global surcharge on July 24, 2026, the tariff changed to a permanent 12.5% Section 301 tariff. This higher-tier penalty was applied because the USTR concluded that Cameroon failed to demonstrate adequate domestic enforcement protocols to prevent the entry of goods produced with forced labor.
Cameroon is not subject to the separate, pending Section 301 Structural Excess Capacity investigations initiated by USTR on March 12, 2026.
– Article contributed by the Government Affairs team of the Premium Cigar Association (PCA).
Editor’s Note: This article is intended for informational purposes only and summarizes current tariff developments as of the date of publication. Tariff policies and trade actions may change. PCA members should consult legal counsel or a qualified customs professional regarding the application of tariffs to specific imports or business decisions.