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On April 2, 2025, the White House announced a significant shift in trade policy that will affect the premium cigar industry, among other sectors. As of April 5, 2025, at 12:01 a.m. EDT, a 10% tariff will be applied to all goods entering the United States. A second phase, beginning April 9, 2025, at 12:01 a.m. EDT, will introduce additional reciprocal tariffs on countries with higher tariffs or trade barriers against the U.S., set at half the value of those barriers.

For cigar-producing countries, the impact varies. The Dominican Republic and Honduras will face a 10% tariff, aligning with the universal rate. Nicaragua will see a 18% tariff, reflecting its 36% tariff on U.S. goods. Costa Rica, despite imposing a 17% tariff on U.S. goods, will also face a 10% tariff. Mexico’s USMCA-compliant cigars will remain tariff-free, though non-compliant goods could incur a 12% tariff if current fentanyl and migration measures expire. These tariffs, linked to a national emergency declaration addressing trade deficits, will remain in place until the President deems the issues resolved, with potential adjustments based on responses from trading partners.

The Premium Cigar Association (PCA) is actively responding to these developments. The organization’s leadership and government affairs team are working with policymakers and industry allies to address the potential effects on retailers, manufacturers, and consumers who rely on cigars from these regions. Joshua Habursky, Executive Director of the PCA, stated: “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.”