TobaccoReporter logo

Tag: nicaragua

  • U.S. Cigar Imports Up 4.6% in 2025

    U.S. Cigar Imports Up 4.6% in 2025

    Handmade cigar imports to the United States continue to rise, according to new data released this week by the Cigar Association of America (CAA), signaling sustained growth in the premium cigar market. Imports for the first three quarters of 2025 totaled 318.6 million cigars, a 4.6% increase compared with the same period in 2024, according to Cigar Aficionado.

    Nicaragua remained the dominant supplier, accounting for 190.4 million cigars, up 2.1% year over year. The Dominican Republic followed with 69.9 million cigars, a 3.8% increase, while Honduras recorded the fastest growth among the top producers, with shipments jumping 14.8% to 55.5 million cigars. Together, the three countries accounted for more than 99% of all handmade cigar imports.

    The largest monthly surge occurred in March, when imports rose 29% compared with March 2024, following the announcement of the Trump administration’s “Liberation Day” tariffs affecting cigar-producing countries. In 2024, U.S. imports reached 430 million handmade cigars, up 0.9% from 2023. If current trends hold, 2025 is on pace to mark the fifth consecutive year with more than 400 million handmade cigars imported into the U.S.

  • Cigars Expected to Miss Upcoming Nicaraguan Tariffs

    Cigars Expected to Miss Upcoming Nicaraguan Tariffs

    The U.S. government’s newly announced 15% tariff on select Nicaraguan imports is not expected to apply to cigars, according to industry sources and trade officials. The tariffs—introduced as part of a U.S. Trade Representative (USTR) investigation into Nicaragua’s human rights violations—will apply only to products not covered by the CAFTA-DR trade agreement, which shields qualifying Nicaraguan cigars that meet “Rules of Origin” requirements.

    Under the schedule, affected goods will face 0% additional tariff in 2026, 10% in 2027, and 15% in 2028, on top of an existing 18% Trump-era tariff that remains tied up in ongoing litigation. Should both apply, some products could face 33% tariffs by 2028, though cigars are widely expected to remain exempt as long as CAFTA-DR protections stand.

  • 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.

  • Oliva Launches ‘Year of the Dragon’ Cigar

    Oliva Launches ‘Year of the Dragon’ Cigar

    Nicaragua-based Oliva Cigars has partnered with China Duty Free Group (CDFG) to launch a limited-edition “Year of the Dragon” premium cigar line.

    The MSRP has been set at $35 per cigar or $350 per box of 10 cigars. Production is limited to 1,500 boxes, and they are expected to go on sale in mid-February.

    Each box features a dragon design, paying homage to the creature and the spirit of the Chinese New Year.

    Credit: Oliva

    The Year of the Dragon is a Churchhill produced in Oliva’s factory in Esteli, Nicaragua, and features an Ecuadorian Habano sun-grown wrapper over a Nicaraguan binder and Nicaraguan fillers.

    “We are thrilled to introduce the Oliva Year of the Dragon Churchill Cigar in celebration of the Chinese New Year in cooperation with CDFG,” Oliva Cigars Export Manager Thomas Gryson said in a press release. “This limited-edition collection is a true embodiment of our dedication to quality and craftsmanship.

    “We have carefully curated this offering to provide aficionados with a unique and culturally significant cigar experience, making it a must-have for collectors and enthusiasts alike.”