TobaccoReporter logo

Category: News This Week

  • Nicaraguan Cigars Could Face 100% Tariff

    Nicaraguan Cigars Could Face 100% Tariff

    The U.S. is considering imposing new tariffs of up to 100% on imports from Nicaragua or revoking the country’s benefits under a free trade deal, the White House’s Office of the U.S. Trade Representative announced yesterday (October 20). According to Reuters, the report cites Nicaragua’s “abuses of labor rights, human rights and fundamental freedoms, and dismantling of rule of law” as creating a burden on U.S. commerce. Nicaragua and its President Daniel Ortega have faced international scrutiny for cracking down on dissidents, local journalists, and non-governmental organizations in recent years. The proposed tariffs stem from a “Section 301” unfair trade practices investigation initiated during the final days of the Biden administration, with President Trump set to make the final decision.

    The proposed tariffs could have a significant impact on the cigar market, as Nicaragua is the largest exporter of handmade cigars to the United States. Currently, these cigars face an 18% tariff, but a 100% tariff would sharply raise costs for U.S. importers and consumers. According to Cigar Aficionado, industry analysts estimate the price increase could range from 50 cents to $1 per cigar, with higher increases in states with additional tobacco taxes. This could affect consumer demand and shift purchasing behavior, potentially slowing sales of Nicaraguan cigars in the U.S.

    Cigar companies have indicated that current supply deals may remain unaffected in the short term, but price increases are likely once tariffs are implemented, according to Halfwheel. The industry is closely monitoring the situation as the public consultation period on the proposed tariffs concludes November 19, after which the final decision is expected.

  • BAT Launches Tender Offer for €1 Billion Hybrid Securities

    BAT Launches Tender Offer for €1 Billion Hybrid Securities

    BAT announced a cash tender offer for its €1 billion Perpetual Subordinated Fixed-to-Reset Rate Non-Call 5.25 Year Securities, carrying a 3% coupon and a first optional redemption date in late 2026. The company is offering to purchase all of the securities at 100.375% of face value, plus accrued interest. The move is part of BAT’s plan to proactively manage its hybrid capital portfolio, alongside the planned issuance of new euro-denominated hybrid capital securities. The tender offer runs until October 28 at 4 p.m. BST, with settlement expected on October 31.

    If BAT purchases 75% or more of the outstanding securities, it may exercise its option to redeem the remaining notes at par. Securities acquired in the offer will be cancelled. The transaction is not open to U.S. investors and remains subject to a New Financing Condition linked to the success of the new bond issuance.

  • PMI Reports Strong Q3 Based on Smoke-Free Surge

    PMI Reports Strong Q3 Based on Smoke-Free Surge

    Today (October 21), Philip Morris International reported strong third-quarter 2025 results, with adjusted diluted earnings per share rising 17.3% to $2.24, while reported EPS increased 13.2% to $2.23. The company said it achieved record smoke-free gross profit, supported by higher volumes and favorable pricing. Net revenues grew 5.9% on an organic basis, and adjusted operating income rose 7.5%, driven by strong performance in smoke-free products, despite a 3.2% decline in cigarette volumes.

    PMI’s smoke-free portfolio continued to expand rapidly, now accounting for 41% of total net revenues and 42% of gross profit. Volumes of smoke-free products rose 16.6%, led by the IQOS heated tobacco line and ZYN nicotine pouches. IQOS strengthened its market share across Europe and Asia, while ZYN’s U.S. offtake surged 39% following its return to full availability. The e-vapor brand VEEV also posted a 91% jump in shipments, solidifying PMI’s diversified presence across smoke-free categories.

    Reflecting this momentum, PMI raised its full-year adjusted EPS guidance and boosted its quarterly dividend by 8.9% to $1.47 per share. CEO Jacek Olczak said the company’s smoke-free business “continues to outgrow the industry by a clear margin,” adding that PMI is “on track to exceed” its 2024–2026 growth targets. Despite regulatory challenges in some markets, the company remains focused on transitioning adult smokers toward smoke-free alternatives and expanding its portfolio in 100 markets worldwide.

  • CVA Urges Education Over Prohibition as Youth Vaping Declines

    CVA Urges Education Over Prohibition as Youth Vaping Declines

    The Canadian Vaping Association (CVA) is calling on federal and provincial health ministers to prioritize youth prevention and education programs over restrictive vaping bans, warning that prohibitionist policies could fuel the illicit market and push adult smokers back to cigarettes. CVA President Sam Tam said measures such as flavor bans would undermine harm-reduction efforts that have helped millions quit smoking, noting that tobacco use remains the leading cause of preventable death in Canada. The group emphasized that prohibition “leaves adult smokers with nowhere to turn except back to tobacco use,” threatening Canada’s goal of reducing smoking rates below 5% by 2035.

    Citing new Statistics Canada data, the CVA said youth vaping rates among Canadians aged 12–17 have fallen to 7.2% in 2025, nearly half the 2019 peak, crediting education-focused initiatives such as Health Canada’s “I Quit for Me” program. The association also highlighted research showing that flavored vaping products are crucial in helping adults switch from cigarettes, referencing studies by McGill University, Public Health England, and the Public Health Agency of Canada. The CVA warned that banning legal, regulated products would drive consumers to the black market, where unregulated, high-strength nicotine products are easily accessible to youth. Instead, the group urged governments to back evidence-based regulation, support enforcement, and expand youth cessation resources rather than pursuing prohibitionist approaches.

  • Indonesia Offers Amnesty to Bring Illicit Tobacco Makers into Fold

    Indonesia Offers Amnesty to Bring Illicit Tobacco Makers into Fold

    Indonesia’s government dropped plans to raise tobacco excise taxes and is instead offering amnesty to illegal cigarette manufacturers, signaling a major policy shift away from years of punitive enforcement. Finance Minister Purbaya Yudhi Sadewa said the new strategy aims to bring unregistered producers into the formal economy, where their output can be monitored and taxed. The move comes as the government acknowledges that repeated excise hikes and raids under the previous “Gempur Rokok Ilegal” campaign failed to meaningfully reduce demand, while pushing small manufacturers underground.

    The policy rethink reflects a more pragmatic response to weak purchasing power and slow job creation, with officials noting that tobacco remains Indonesia’s single largest source of excise revenue and a vital employer across the supply chain—from farmers to factory workers and small retailers. Purbaya emphasized that the industry’s economic role must be balanced with health goals, warning that overregulation during a fragile labor market could trigger widespread job losses.

    By formalizing more players in the industry, the government hopes to expand its tax base, stabilize employment, and strengthen oversight—marking a strategic pivot from symbolic crackdowns toward sustainable regulation and fiscal recovery.

  • Small Tobacco Firms Sue Virginia Over Flavored Vape Restrictions

    Small Tobacco Firms Sue Virginia Over Flavored Vape Restrictions

    Two Virginia-based vape distributors — NOVA Distro Inc. and Tobacco Hut and Vape Fairfax, Inc. — filed a federal lawsuit last week challenging the state’s upcoming restrictions on flavored vapor products. The suit, filed in the U.S. District Court for the Eastern District of Virginia, names Attorney General Jason Miyares and other state officials as defendants.

    The companies argue that Virginia’s new law, which bars the sale of any nicotine or vapor product not listed on an official state directory and effectively bans flavored vapes, is unconstitutional. According to the complaint, the measure unlawfully delegates federal regulatory powers over tobacco products—reserved for the Food and Drug Administration—to state authorities, violating the Supremacy Clause.

    The plaintiffs are seeking an injunction to block the law before it takes effect on December 31, warning that enforcement would force small businesses to pull most of their inventory from shelves. The case, NOVA Distro et al. v. Miyares et al., is among the first legal challenges to a state-level vape directory law, setting up a potential test of federal preemption in the regulation of nicotine products.

  • Taiwan Pulls Legal Heated Products on Day They are Launched

    Taiwan Pulls Legal Heated Products on Day They are Launched

    Taiwan’s first legally approved heated tobacco products were removed from stores on October 17, the same day they launched, after inspectors found packaging failed to comply with nicotine-content labeling regulations. Vice Minister Chuang Jen-hsiang said health risk assessments were prioritized during product reviews, and manufacturers were aware that all legal requirements, including accurate labeling, must be met.

    Minister of Health and Welfare Shih Chung-liang confirmed that the recall had been completed, and products can return to stores once packaging issues are corrected. Importers face fines of up to NT$5 million (US$163,400) for violations, while retailers may be fined up to NT$50,000. Heated tobacco products are regulated under the 2023 amendment to the Tobacco Hazards Prevention Act, which bans e-cigarettes while allowing approved heated tobacco following a thorough health risk assessment.

    Since July 29, the Health Promotion Administration has approved 14 products from U.S. and Japanese companies.

  • TPA Brief Criticizes WHO Tobacco Treaty for Ignoring Evidence

    TPA Brief Criticizes WHO Tobacco Treaty for Ignoring Evidence

    The Taxpayers Protection Alliance (TPA) released a new policy brief today (October 20), “FCTC: The Wrong Lessons Learned,” by Roger Bate, a fellow at the International Center for Law and Economics, criticizing the World Health Organization’s Framework Convention on Tobacco Control (FCTC) for drifting from its original mission of evidence-based policy. The paper argues that the treaty’s decision-making process has become obscured, ideological, and resistant to scientific debate—particularly around harm reduction products such as e-cigarettes and oral nicotine.

    “The FCTC has evolved into a closed process—hostile to scientific dissent, opaque in its deliberations, and resistant to consumer-driven innovation in tobacco harm reduction (THR),” the paper begins. “This paper argues that the FCTC has become a cautionary model for global public-health governance. Unless checked, this model risks entrenching an authoritarian and anti-scientific impulse across public health. The THR community must lead the counter-narrative—to reform tobacco control and safeguard the integrity of evidence-based policymaking.”

    Bate contends that the FCTC’s approach “demonizes safer alternatives despite real-world success,” preventing adult smokers from accessing less harmful products that could help them quit. He warns that the treaty’s governance flaws mirror broader problems in global health governance, including pandemic response. “A treaty built to reduce smoking deaths should evaluate tools by outcomes, not ideology,” he said.

    The brief calls for reforms, including open sessions at FCTC Conferences of the Parties (COPs), equal conflict-of-interest scrutiny, independent comparisons of cessation tools, proportionate youth protections, and fiscal accountability. TPA fellow Martin Cullip urged the WHO to “reassess the evidence on reduced-risk nicotine products” and improve transparency, warning that the FCTC’s current direction “has become an obstacle to global public health progress.”

  • Australia Launches National Taskforce to Combat Illicit Tobacco Crisis

    Australia Launches National Taskforce to Combat Illicit Tobacco Crisis

    With Australia’s demand for black-market tobacco surging in recent years, driven by steep tax hikes on legal products, authorities have announced a new multi-agency taskforce set to target the organized criminal networks behind it. The Illicit Tobacco National Disruption Group, led by the Australian Border Force, will unite federal, state and territory police with agencies including AUSTRAC, the Australian Criminal Intelligence Commission, the ATO, and Services Australia.

    Backed by almost A$190 million ($124 million) in new funding aimed at dismantling smuggling and distribution operations, the crackdown will examine every stage of the supply chain, from pre-border smuggling to warehouse storage and local street sales. The taskforce will focus on mid-level criminals who import, distribute, or sell illegal tobacco, while also targeting financial flows that sustain the trade. Home Affairs Minister Tony Burke said the coordinated approach was vital as illicit tobacco networks were increasingly tied to broader organized crime.

    “The same criminal groups are involved in organized tobacco, arson and the drug trade,” Burke told the ABC’s Insiders program. “If there’s a cohesion of threats and a convergence of threats, there needs to be a convergence of protection in responding.”

  • Cambodian Cigarette Factory Penalized for Pollution Issues

    Cambodian Cigarette Factory Penalized for Pollution Issues

    An inspection team from Cambodia’s General Department of Environmental Protection has taken action against a cigarette factory in Takeo province for serious environmental violations. The inspection, led by Deputy Director Cho Thol, found the LH-TBC (Cambodia) Co., Ltd. facility in Kang Thom village operating without adequate ventilation or emission control systems, leading to excessive odors and air pollution. Air quality testing confirmed that emissions from the factory exceeded national environmental standards.

    Authorities also determined that the company had been operating without a complete Environmental Impact Assessment and a valid waste discharge permit. In response, the inspection team imposed interim penalties under Cambodia’s Environment and Natural Resources Code and Sub-Decree No. 42 on Air Pollution Control. The company was ordered to install proper odor and smoke filtration systems, compensate for environmental and public health damages, and submit a full EIA report to the Ministry of Environment for review.