The Trump administration's sweeping tariff plan will impact cigar-producing countries, and the Premium Cigar Association (PCA) is looking to alleviate cost burdens on retailers, the Washington, D.C.-based trade association said.
“We are monitoring the situation and engaging with appropriate stakeholders to protect the robust premium cigar market in the United States,” said Joshua Habursky, executive director of PCA, which represents specialty tobacco retailers, manufacturers and other partners in the industry. “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.”
PCA outlined a breakdown of the new reciprocal tariffs for countries that play a role in the cigar industry in the United States. The Dominican Republic, Honduras and Costa Rica are subject to the 10% universal tariff being charged. Nicaragua has an 18% reciprocal tariff rate, and for Mexico, USMCA-compliant cigars remain at 0%, but non-compliant goods face a 12% tariff if existing fentanyl/migration measures lapse, according to PCA.
“We are fully committed to protecting the premium cigar industry, which plays an essential role in supporting American small businesses and consumer interests,” said Rob Burgess, of Connector Inc., a PCA government affairs representative.
Burgess added that 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.”
On April 2, Trump announced the U.S. would impose a universal tariff of 10% on all countries, which took effect April 5. Reciprocal higher tariffs on the countries with which the United States has the largest trade deficits will take effect April 9.
On Monday in a post on Truth Social President Trump said “Countries from all over the World are talking to us. Tough but fair parameters are being set.”
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