Attention: US add Tariffs to China on Electronic Cigarettes!

Jul 25, 2018
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On August 7, the US Trade Representative Office announced a list of adding 25% tariffs on Chinese products worth about $16 billion, which will officially be implemented on August 23. Reuters recently published an article saying that because e-cigarette products are also in the scope of adding tariff, the US e-cigarette industry may become a victim and fall into the dilemma of price increases or layoffs.
Reuters reported that the United States imposed tariffs on Chinese e-cigarette products or eventually led to higher prices for US products. The industry is facing a dilemma of slowing growth and recently added health warnings on packaging, which is not conducive to sales. In 2016, about 91% of US e-cigarettes and related parts imports came from China.
Electronic cigarettes are generally cheaper than cigarettes and have become increasingly popular in the United States in recent years. As a healthier alternative to cigarettes, users inhale oxygen-containing nicotine from electronic devices, free of tar and other chemicals.

According to estimates by the US e-cigar industry, the addition of tariffs will result in a 15% increase in e-cigarette prices. The report said that e-cigarette consumers are very sensitive to price increases, and the industry may suffer a certain blow. A report published by Nielsen, a US research institute, predicts that the US e-cigarette market will retail about $5.5 billion in 2018.
According to a study by Tabacco Control, an e-cigarette price increase of 10% would result in a 12% to 19% reduction in sales. The study also noted that since many e-cigarette users just give a try on the e-cigarette, price increases may limit future industry development.
Industry experts predict that the adding of tariffs will have an effect on almost all e-cigarette products, and small businesses will be the hardest hit.
Reuters pointed out that in the short term, it is difficult for the United States to reject China and independently produce electronic cigarette products. This is because the regulatory environment for related products in the United States has not yet been formed, and food and drug regulatory requirements are still not perfect. In addition, the United States lacks the expertise to manufacture electronic cigarette products.
In a sort of sense, the goods of vapesourcing vape online store in the US warehouse may rise in price in the future for policy reasons.
 
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