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Tag: north carolina

  • Top U.S. Tobacco Producer Bracing for Tariff Impact

    Top U.S. Tobacco Producer Bracing for Tariff Impact

    North Carolina, the United States’ leader in tobacco production, could face economic fallout from the Trump administration’s recent tariff increases, which have set off a spiraling trade war, Katherine Zehnder wrote for The Carolina Journal. North Carolina exported $533 million in tobacco last year, producing 260.1 million pounds annually, accounting for 60% of U.S. tobacco production.

    “I know tobacco growers are busy planting their crops now to honor the 2025 contracts they have in place with China,” Steve Troxler, commissioner of the North Carolina Department of Agriculture and Consumer Services said. “In the meantime, we continue to monitor these trade negotiations very closely, waiting to see what the outcome will be because it is a very fluid situation. Going back to the last trade negotiations that were initiated, the president was very good about helping farmers who had adverse effects. In fact, he was the first president in a very long time who included tobacco.”

    North Carolina has 822 tobacco farms, generating a revenue of $557 million and adding $197 million to the state’s GDP, according to Regulatory Smoke: The Economic Impacts of Proposed FDA Tobacco Regulations, a report from the John Locke Foundation. Tobacco manufacturers in the state generate $36 billion in output and contribute $31 billion to the state’s GDP, employing approximately 5,000 workers and paying them $370 million in wages. The tobacco wholesale sector brings in $15.3 billion in revenue, adds $9 billion to the GDP, and supports around 4,500 jobs.

    “Historically, tobacco exports have been a vital part of North Carolina’s agricultural strength, with countries like China, Japan, and the European Union serving as major buyers of our tobacco,” said Kelly Lester, policy analyst for the Center for Food, Power and Life at the John Locke Foundation. “When tariffs were imposed during the last trade war, China dramatically reduced its tobacco imports from the US, dealing a blow to farmers here at home. A repeat of that scenario could once again destabilize the market, lower prices, and put immense financial pressure on growers who are already navigating inflation, labor shortages, and tightening regulations.”

    The imposed tariffs could result in a significant downturn in these numbers. International markets, such as China, could also see a substantial downturn in exports due to increased tariffs, which would have a trickle-down effect on the state’s economy and agriculture sector. Last month, China announced plans to impose a 10% tariff on North Carolina exports, which include fruits and vegetables. In addition, China’s tariff on US goods was recently increased from 34% to 84%. 

    “It was pretty predictable that China was going to have a big impact, and they have, and they’re going to attack tobacco pretty hard because they know that that’s part of the soft underbelly in the agriculture sector,” State Rep. Jimmy Dixon, said. “I do not expect it to be permanent; I think that China will come to the negotiating table sooner rather than later, but the temporary reaction will be very tough and difficult and probably be a little bit depressing to our tobacco farmers. I’m telling people I’m personal friends with to hang on; it’s going to be a bumpy ride, but a short bumpy ride.”

  • N.C. Task Force Wants to Raise Tobacco Age to 21

    N.C. Task Force Wants to Raise Tobacco Age to 21

    North Carolina’s Child Fatality Task Force submitted a report to the governor and the legislature for 2025 suggesting the state raise the legal age for tobacco purchases from 18 to 21 to align with federal laws, and make licenses required for tobacco retailers. The report notes that North Carolina is one of seven states to not have raised the age for purchases to 21 and is one of nine states to not require a license or permit for tobacco retailers. 

    The task force also recommended prohibiting the sale of intoxicating cannabis or hemp products to people younger than 21, requiring child-resistant packaging and package warnings, and requiring retailers to obtain permits.

    “Last year, the legislature was close to passing a law that would have set a minimum age of 21 for buying edibles containing hemp CBD,” Lynn Bonner wrote on NC Newsline. “The bill was derailed when the Senate added legalization of medical marijuana to it.  While the Senate passed the measure, it stalled in the House.”

  • Judge Seals Docs in Juul Case

    Judge Seals Docs in Juul Case

    On Tuesday (Feb. 25), a federal judge in North Carolina granted requests by R.J. Reynolds Vapor Co. and Philip Morris’ parent company, Altria, to seal documents in their ongoing royalty dispute, keeping details of their licensing agreements with the vape brand JUUL confidential.

    “The court ruled that the agreements contained sensitive business information — including financial terms, licensing strategies and negotiation details — that could harm competitive standing, and all six motions to seal were granted,” Andrea Keckley wrote for Law360.

    The court found that an amendment to a licensing agreement between Altria and JUUL and a copy of a licensing agreement between the two were confidential and that disclosing them would “harm the party’s competitive standing or otherwise harm its business interests.” The filings stem RJR’s bid for relief against a $95 million judgement after a jury sided with Altria in a 2022 patent infringement case. The defense has argued that it should receive relief because a deal with Juul sublicensed the asserted patents.

    “Ultimately, however, this court need not decide whether the documents or hearing are protected by the First Amendment’s right of access, because even assuming the First Amendment standard applies, movants have put forth compelling interests in sealing the order and the proposed sealing is narrowly tailored such that the First Amendment right of access has been overcome,” U.S. District Judge William Lindsay Osteen Jr wrote. “Although this court has considered less drastic alternatives to sealing, the parties have already redacted their filings so as to allow public access to as much information as possible without compromising sensitive business information,” he wrote. “It is this court’s view that the parties’ proposed redactions reflect the least drastic alternative at this time.”

  • NC Tobacco Growers to Vote on Assessment

    NC Tobacco Growers to Vote on Assessment

    North Carolina tobacco growers will decide this month whether to continue assessing themselves to support export promotion. It was announced today (February 11) that a referendum will take place February 19 at the Johnston County Agricultural Building, in Smithfield.

    For years, growers of flue-cured tobacco have assessed themselves to fund Tobacco Associates Inc., which seeks to promote and expand the export of U.S. leaf. If farmers approve the assessment, it will be no more than one-fifth of one cent per pound. The assessment would continue until the next vote in 2029.

  • North Carolina Tweaks Rules for Cigar Bars

    North Carolina Tweaks Rules for Cigar Bars

    A last-minute addition to a bill related to alcohol sales in North Carolina should expand the number of cigar bars in the state.

    Governor Roy Cooper signed S.B. 527, a bill related to the state’s Alcoholic Beverage Commission. The bill includes text that critics say will make owning or operating a cigar bar in North Carolina much easier, according to media reports.

    While the state already allows for cigar bars—places that allow for cigar smoking and serve liquor—previously, those businesses were required to be the only entity located in standalone buildings. With the rules change, only if a cigar bar serves food must it be located in a standalone building.

    This will greatly increase the number of locations where a cigar bar could be located, likely meaning that many existing cigar stores may be eligible to become cigar bars.

    The headline change of the bill is that it allows for to-go cocktails.

  • Vape Registry Rule Slipped Into NC Bill

    Vape Registry Rule Slipped Into NC Bill

    North Carolina State House of Representatives Chamber (Credit: J Zehnder)

    A new bill in North Carolina, if passed, would require the state to certify vaping and other next-generation tobacco products for sale.

    The Senate Judiciary Committee approved the proposal Wednesday. It was slipped into HB 900, which deals with Wake County leadership academies and their ability to maintain state designations. The House passed it without objection.

    To become law, the bill would need to pass the Senate and then the House before the end of the session. Senate leaders have said they plan to complete their work by the end of the month, local media reports.

    The chambers, both controlled by Republicans, have been unable to come to an agreement on budget modifications for the fiscal year that begins July 1.

    A North Carolina lawmaker wrongly told other lawmakers during debate that the U.S. Food and Drug Administration regulates the products, but the regulatory agency does not have the ability to check which products are being sold.

    The bill would fine retailers who sell products that aren’t on the registry for initial violations. The legislation could also suspend or revoke the establishment’s license.

    Vaping industry representatives warned lawmakers that the bill will cost people jobs and money.

    PMTA registry laws are already being enforced in Alabama, Louisiana and Oklahoma. Wisconsin passed a registry law in December and will become effective July 1, 2025. 

    Utah also passed a registry bill that included a flavor ban that will become active on Jan. 1, 2025, and Florida has a unique registry that also begins Jan. 1, 2025.

  • North Carolina Launches Juul Depository

    North Carolina Launches Juul Depository

    Photo: matousekfoto

    The attorney general for the U.S. state of North Carolina announced the launch of an online, searchable public depository that will contain nearly 4 million documents from the state’s lawsuit against e-cigarette manufacturer Juul Labs.

    The depository was created and is being housed by the University of North Carolina at Chapel Hill’s (UNC) University Libraries and the University of California, San Francisco (UCSF). The first 50,000 documents are now available online in the UCSF Industry Documents Library, and additional documents will be added monthly, according to Attorney General Josh Stein.

    “We insisted on a publicly accessible database of Juul’s documents to ensure transparency,” said Stein in a statement. “We want people to understand what Juul did so this never happens again. I’m grateful for the partnership with UNC and UCSF and appreciate their teams’ hard work to bring this document library to life.”

    Stein sued Juul Labs in 2019 for unlawfully designing, marketing and selling its e-cigarettes to teenagers. In 2021, he reached a first-in-the-nation settlement with the pod vaping system manufacturer, winning $47.8 million and requiring the company to make significant business changes and publicize many of the documents it had produced during the lawsuit.

    The documents include information about Juul Labs’ business practices, research, advertisement, marketing, and sales data, and, according to Stein, “they shine a light” on how the company marketed its products to youth.

    The Juul Labs documents will be cross-searchable with more than 18 million other documents in the UCSF library’s tobacco, opioid, chemical, drug, food and fossil fuel industry archives.

    Stein is also investigating Puff Bar and other e-cigarette manufacturers, distributors and retailers due to ongoing concerns about flavors, age verification and marketing.