Just weeks after surpassing his first 100 days in office, Donald Trump has not held back. Since taking over in January, the Trump Administration has signed a handful of executive orders and made various attempts at legislation change.
Of Trump’s recent changes, an increase in foreign tariffs from China and beyond are raising concerns among Americans. Most Americans are concerned with how price increases will affect their everyday lives but do not understand how encompassing the tariffs are.
Included in the long list of tariffs: a lofty increase on the production of E-cigarettes.
Trump’s Tariffs
In early April, Trump announced that he would be placing reciprocal tariffs on at least 90 countries. That list has continued to grow. The program places a 10% tax increase on all affected nations with the intention of lessening a trade deficit for the United States.
Since the announcement, Trump has begun to approach tax increases on a case-by-case basis. The biggest target of the Trump administration so far has been China, China currently faces a 145% import tax on most Chinese goods. China formerly faced a rate of 34%, and they now face a stark increase.
Since the implementation of the tariffs last month, import shipments from China have plunged. As imports to the US decrease, China seeks to strengthen trade relationships with other nations. According to a May 9 article from the New York Times, “Chinese shipments to the United States plunged 21 percent from a year earlier. But Chinese exports to Southeast Asian countries surged 21 percent.”
China is the world’s largest manufacturer and has been touted as the sole manufacturing superpower. As the United States searches for alternative manufacturers, prices will continue to increase across the board.
China’s manufacturing outputs are far and wide. They’re the largest producers of assembly line manufacturing. These exports include electronics, clothing, textiles, and much more.
The E-Cigarette Market
On the long list of tariff affected industries, the cost of e-cigarettes is likely to skyrocket in coming months. Atlantic Magazine recently published an article that suggests tariffs could help lessen nicotine usage among young people in the states.
According to the Centers for Disease Control and Prevention, e-smoking, or vaping, is the most popular form of nicotine usage among US youth. Most vaporizer devices in circulation in the US are completely manufactured and distributed by Chinese companies. Due to the tariff increases, American vape users are wondering about the future of e-cigarettes.
Vaping was introduced to the US market in 2006. Originally, e-cigarettes were created as a smoking cessation tool for adults addicted to cigarettes. When vaporizer devices were first introduced, they were only marketed for this reason.
As vaporizer devices have evolved, they’re now marketed at young people for their different flavors and features. With the introduction of brands such as JUUL, a pocket-sized flavored vaporizer, the market for vapes increased. Most vaping devices are small and undetectable making smoking possible in places it is otherwise forbidden.
According to a study conducted by the CDC, 7 in 10 middle schoolers and high schoolers in the US had seen some sort of vape advertising. Of these students, many of them later became addicted to vaping.
Vape tariffs limiting access to these devices may lead to lower levels of nicotine addicted youth. The vape market in the US relies on the wholesale of devices to US based countries from manufacturers, mostly in China. As Chinese companies curb their shipments to the US, e-cigarettes become less accessible.
Anti-Vape Campaigns on the State level
The increase of vape usage among young people has raised concerns among state lawmakers. As of 2024, 10 states implemented a full ban or strict regulations on e-cigarettes. Each state has different regulatory measures but most restrict the sale of certain flavors. Some states prevent the sale of artificially flavored vaporizers at all.
Vaping is considered to be a new technology and there is not a set of federal regulations that states are forced to abide by. Due to this, state regulations continue to evolve and adapt.
As states opt into banning vaporizer devices, it is important to understand why they’re choosing to do so. As nicotine usage has evolved over the last century, it has become clear that as Americans ditch cigarettes, they’re choosing vapes.
Research has shown the long term dangers caused by cigarettes. The CDC warns that smoking causes cancer, lung disease, and can pose risks for second hand inhalation. These conclusions are findings from decades of research.
Vaping has not existed long enough to understand its long term effects on health and state regulations reflect that uncertainty. In order to curb vape usage without the passage of immediate legislation, states have turned to raising taxes.
Taxes on e-cigarettes include taxation of stores and on the devices themselves. Since 2020, most states have raised the age to purchase vapes to 21. States are hesitant to completely ban vaporizer devices as many still use them as a tool to quit vaping.
Vape Market Implications
As e-cigarettes become harder to find in stores, experts warn that the illegal circulation of vape devices will still increase. In coming months, some suggest that the influx of vapes into the US may come in boxes that are purposefully mislabeled.
US based nicotine companies have raised concern for the illegal market as well. Altria, the parent company of Marlboro and now a US based vape distributor, suggested that a majority of vapes in US circulation are illicit.
A spokesperson for the company told Fortune that in order to address the issue, the government must become concerned with regulations on devices. As more Americans turn to vaping instead of other nicotine mediums, it is hard to imagine a US market without e-cigarette circulation.
While industries in the US figure out a way to adapt to increased tariffs, it may force companies to become entirely domestic. This could be the beginning of a domestic e-cigarette manufacturing system.
