On April 2, 2025, the White House introduced a sweeping trade policy shift, set to impact the premium cigar industry among others. Starting April 5, 2025, at 12:01 a.m. EDT, a 10% tariff will apply to all goods entering the United States. A second phase, effective April 9, 2025, at 12:01 a.m. EDT, will impose additional reciprocal tariffs on countries with higher tariffs or trade barriers against the U.S., calculated at half the value of those barriers.
What This Means for Cigars
For key cigar-producing nations, the reciprocal tariffs vary:
- Dominican Republic and Honduras: 10% (matching the universal rate).
- Nicaragua: 18% (reflecting its 36% tariff on U.S. goods).
- Costa Rica: 10% (despite a 17% tariff on U.S. goods).
- Mexico: USMCA-compliant cigars remain at 0%, but non-compliant goods face a 12% tariff if existing fentanyl/migration measures lapse.
These tariffs, tied to a national emergency declaration over trade deficits, will persist until the President determines the underlying issues are resolved, with flexibility for adjustments based on trading partners’ responses.
PCA’s Commitment to Action
The Premium Cigar Association (PCA) is taking decisive steps to protect our industry’s vitality amid these changes. Our leadership and government affairs team are already in motion, collaborating with policymakers and allies to safeguard the interests of retailers, manufacturers, and consumers who depend on premium cigars from these regions.
Joshua Habursky, Executive Director of the Premium Cigar Association, emphasized:“We are monitoring the situation and engaging with appropriate stakeholders to protect the robust premium cigar market in the United States. The administration is well aware of the importance of small business retail in main streets across the country, and we are hopeful to mitigate cost burdens on retailers, manufacturers, and consumers overall. America is first in the premium cigar retail space and we plan to continue to hold that position.”
Rob Burgess, of Connector Inc., a PCA Government Affairs representative, reinforced this effort:“ We are fully committed to protecting the premium cigar industry, which plays an essential role in supporting American small businesses and consumer interests. The PCA’s government relations team is working diligently, engaging actively with government officials and key stakeholders to address the implications of these tariffs. Our aim is to reduce financial pressures while ensuring the United States continues to lead in the premium cigar market, benefiting retailers, manufacturers, and consumers alike.”
Our Plan Moving Forward
Rather than simply reacting, the PCA is proactively exploring solutions to cushion the impact on our members. We’re committed to keeping you informed as the situation develops.
For the full White House statement, see the official release here.
***This is a very fluid situation and things can change quickly, stay up to date with the Premium Cigar Association to get news on changes to this policy.***