On April 2, 2025, the White House announced a major shift in U.S. trade policy that will significantly affect the premium cigar industry, among others. Beginning 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 of the policy rolls out on April 9, 2025, at 12:01 a.m. EDT, introducing reciprocal tariffs on countries that currently impose higher tariffs or trade barriers against the U.S. These will be calculated at half the value of those trade barriers.

What This Means for Premium Cigars

The impact on cigar-producing countries varies based on their current trade policies with the U.S.:

  • Dominican Republic & Honduras: 10% tariff (standard rate)
  • Nicaragua: 18% tariff (due to a 36% tariff on U.S. goods)
  • Costa Rica: 10% tariff (despite their 17% tariff on U.S. imports)
  • Mexico: 0% for USMCA-compliant cigars; 12% for non-compliant goods if fentanyl/migration enforcement measures lapse

These tariffs are tied to a national emergency declaration centered on addressing the U.S. trade deficit. They will remain in effect until the administration determines the issue has been resolved, with room for adjustments based on responses from trade partners.

PCA’s Response & Commitment

The Premium Cigar Association (PCA) is actively responding to this policy shift. Our leadership and government affairs team are working closely with lawmakers and allied organizations to protect the premium cigar sector—particularly small business retailers, manufacturers, and loyal consumers.

Joshua Habursky, PCA Executive Director, 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 on 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, Government Affairs Representative at Connector Inc., added:

“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.”

Looking Ahead

The PCA is not standing still. We’re actively exploring strategic options to reduce the burden on our members and safeguard the industry’s future. We’ll continue to keep our community informed with timely updates.

👉 Read the full White House announcement here

Stay Informed
This is a rapidly evolving situation. Stay connected with the Premium Cigar Association for the latest updates on policy developments affecting our industry.