Vapers are the latest victims of the escalating China Trade War. On Wednesday, August 1st President Trump ordered new tariffs on Chinese goods doubled from 10% to 25%. This increase affects $16 billion worth of Chinese imports, which include vaping products.
When the first tariff's went into effect in July, that 25% hike did not include any vaporizer devices. The moment Trump announced this, China did not hesitate to strike back with its own. The administration then proposed a new 10% hike on about $200 billion worth of Chinese goods only to be raised to 25% shortly after. The new duties are expected to take place in the next month or so.
Higher-tariffs on Chinese-made vaping units means higher prices for American consumers and businesses. 91% of e-cigs imported into the United States come from China.
“Yes, it will hurt consumers, yes, it will hurt the industry,” said Tony Abboud, President of the Vapor Technology Association.
These new import duties are the latest threat to the growth of the e-cig market. Last April, the FDA came down hard on vape retailers caught selling to minors. One bright spot has been that the FDA has pushed back the deadline for regulating e-cigarettes to 2022. E-cigarettes have made significant gains in the last two years. Sales have gone up from 32 in 2017, to 68% from June of last year. If the proposal goes through, vapers will start to see higher prices at their local vape shops.