Perdomo Cigars announced it will increase its prices 25 cents per cigar beginning May 1, the second time the company has raised prices 25 cents in 2025. The first was to adjust rising costs with wholesale pricing, the second is because of new U.S. tariffs.
“As you may know, a new 10% tariff has been imposed on premium handmade cigars imported from Nicaragua, where every Perdomo cigar is proudly crafted,” said Nick Perdomo Jr., the company’s president and CEO. “This government-mandated cost affects every manufacturer in our industry, and once again, we are called to protect our customers, the end consumers, and our employees while navigating the challenging business environment we all face today.”
Nicaragua was to have a 19% tariff, but the rate was dropped to 10%, through “a 90-day suspension.”
“The tariff is applied to the ‘direct import price,’ which is neither the wholesale price that retailers buy the cigars for nor the price that consumers pay for cigars,” Charlie Minato wrote for Halfwheel. “Unlike state tobacco taxes, which are calculated based on the wholesale price, the tariffs are baked into the wholesale price. Because of this, the tariffs won’t simply be passed onto consumers, consumers will likely end up paying double whatever the increase is. In this case, that means the 25-cent increase is effectively 50 cents for consumers, though it will end up being more once state tobacco and sales taxes are applied.”
Earlier this year, cigar manufacturers were taking a “wait-and-see” approach to see how competitors would handle the tariff situation, so this is likely the first of many price increases the industry will see due to tariffs.
