Altadis U.S.A. has announced a 5% surcharge on all invoices starting June 2, as a response to the tariffs enacted by the Trump administration. This action follows a similar decision by Scandinavian Tobacco Group (STG), and although the listed prices won’t change, the actual cost of cigars like Romeo y Julieta, Montecristo, and Aging Room will rise by 5%.
|
Country |
April 2 Announced Tariffs |
April 9 Announced Tariffs |
April 11 Announced Tariffs |
|
China |
34 % |
125 % |
145 % |
|
Costa Rica |
10 % |
10 % |
10 % |
|
Dominican Republic |
10 % |
10 % |
10 % |
|
European Union |
20 % |
10 % |
10 % |
|
Honduras |
10 % |
10 % |
10 % |
|
Nicaragua |
19 % |
10 % |
10 % |
The surcharge is a direct result of trade policy shifts affecting imports from countries like Nicaragua, the Dominican Republic, and Honduras—key manufacturing hubs for Altadis U.S.A. Many of their cigars are also produced by third-party factories such as AJ Fernandez in Nicaragua.
Unlike traditional state tobacco taxes, which are calculated based on wholesale prices, this import-based tariff affects the cost structure from the ground up. As a result, retailers may pass on even greater increases to consumers, especially in states with percentage-based tobacco taxes. The financial impact on consumers is expected to exceed the initial 5% increase.
Halfwheel magazine surveyed cigar companies, and approximately half said they would raise prices if the tariffs remained in place.
|
Company |
Price Increase? |
Tariff Increase? |
|
ADV & McKay |
No |
|
|
AGANORSA Leaf |
Yes |
|
|
AJ Fernandez |
No |
|
|
Altadis U.S.A. |
Yes |
Yes |
|
Arango |
No |
No |
|
Artesano Del Tobacco |
No |
Yes |
|
Artista Cigars |
Yes |
|
|
Big Sky |
No |
|
|
Black Star Line Cigars |
Yes |
|
|
Boveda |
No |
|
|
Casa Carrillo |
Yes |
Yes |
|
Casa Cuevas |
No |
|
|
Casa de Sueños |
No |
|
|
Casdagli |
No |
|
|
Cigar Ambassador |
No |
|
|
CLE Cigar Co. |
Yes |
Yes |
|
Curivari |
No |
|
|
Dapper |
No |
|
|
Debonaire |
No |
|
|
Drew Estate |
Yes |
|
|
Dunbarton Tobacco & Trust |
Yes |
|
|
El Mago |
No |
|
|
El Septimo |
Yes |
|
|
Esteban Carreras |
Yes |
Yes |
|
Falto Cigars |
No |
|
|
Family By Loyalty |
No |
|
|
Foundation |
No |
Yes |
|
Founders Cigar Co. |
No |
|
|
Freud Cigar Co. |
No |
|
|
Gurkha |
Yes |
|
|
Habanos S.A. |
Yes |
|
|
Hiram & Solomon |
No |
|
|
Hooten Young |
No |
|
|
Iconic Leaf |
No |
|
|
Joya de Nicaragua |
Yes |
|
|
JRE Tobacco Co. |
No |
|
|
La Aurora |
Yes |
|
|
Lampert |
Yes |
|
|
Martinez Cigars |
No |
|
|
Maya Selva |
No |
|
|
Nova Cigar |
No |
|
|
Oliva |
Yes |
|
|
Oscar Valladares |
Yes |
Yes |
|
Patoro |
Yes |
|
|
PDR Cigars |
Yes |
|
|
Perdomo |
Yes |
Yes |
|
Peter James Co. |
No |
|
|
Plasencia |
Yes |
|
|
Powstanie |
Yes |
|
|
Rebellion Cigars |
No |
|
|
RoMa Craft Tobac |
Yes |
|
|
Scandinavian Tobacco Group |
Yes |
|
|
Sinistro |
No |
|
|
Southern Draw |
No |
Yes |
|
Stolen Throne |
No |
|
|
Tatuaje |
No |
|
|
United Cigar Group |
No |
|
|
Villiger |
Yes |
|
|
Warfighter |
No |
|
|
Wildfire |
No |
Content based on the source: halfwheel.com
