Impact of Tariffs on Premium Cigar Enthusiasts and Retailers
- Gary Cruice
- 12 minutes ago
- 2 min read
By the time this is posted, the tariff picture may have changed. What won't change, is the impact President Trump's tariff increases will have on premium cigar prices. In case there is still some doubt, a tariff is a tax on imported goods. That tax is paid by the importer, who then passes the cost along to the consumer. In the case of premium cigars, that consumer is us!
Tariffs are so impactful that in a recent interview, Warren Buffet called tariffs "an act of war"! In a recent article CA presents a pretty solid explanation and analysis of how the current tarrifs will impact premium cigars. What most consumers don't realize is that these tariffs happen before other taxes are applied. Since Louisiana currently has a 20% tobacco tax, without a cap, prices will rise by a greater percentage than any applicable tariff.
Bad News - While premium cigar enthusiasts can expect prices to rise, all of the tariff talk began in earnest just as the premium cigar industry was preparing for one of its biggest events, the PCA tradeshow. Most manufacturers factored these pending increases into their tradeshow preparations. Those impending price increases went into effect May 1st!
Good News - Bailey's attended the tradeshow and made contact with our suppliers. We were able to take advantage of multiple tradeshow deals and discounts. This should help us keep prices down for a bit. The PCA tradeshow is also a time where many maufacturers present new releases. This means you can expect to see some new premium cigars on the shelves over the next few weeks. All at introductory prices!
More Good News - There is currently proposed legislation that would exempt premium cigars from FDA oversight! The CIGAR Act (Cutting Invasive Government Arbitrary Regulations) would establish a clear exemption for premium cigars from FDA regulation, ensuring they are treated distinctly from mass-market tobacco products. You can help by signing the CRA petition in support! Don't forget that CRA members get a 10% discount at Bailey's!
All this happens as Bailey's prepares for a 5th Birthday Celebration! Make sure to check our FaceBook page or Newsletter for details. Stay Calm and Smoke a Premium Cigar...

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