Tariffs on Chinese imports could seriously hurt the U.S. vapor business, reports Reuters.
According to industry estimates, the Trump administration’s threatened 25 percent tariffs on Chinese goods, which includes vape devices and parts, could lead to a 15 percent price increase on finished vaping products, as the industry relies on Chinese imports for 91 percent of its products.
According to the study in Tobacco Control, even a 10 percent price increase in e-cigarettes would reduce sales by 12-19 percent, leading to concerns that these tariffs could have a massive impact on a relatively new industry that relies on new users for growth.
Nielsen estimates retail sales of the U.S. vapor market will be about $5.5 billion in 2018.
Commenting on the proposed tariffs, Gerald Masoudi, chief legal officer of Juul, explained to the U.S. Commerce Department that no manufacturers located outside of China would be willing or able to supply the volume of devices his company needs.
Tariffs threaten vapor
