Economics Corner: New US Tariffs effect on US Cigar Prices

[treberty]

And now a 90 day pause on the tariffs...except for China (go figure). This improvisation is getting more and more ridiculous by the hour.

*10% tariffs will be applied to all countries other than China.

[sudoslash]

This isn't the behavior of a healthy market 😅 but greed during the fear was rewarded handsomely today! 

[El Presidente]

2 hours ago, treberty said:

And now a 90 day pause on the tariffs..

This buffoonery causes serious angst. 

[MrBirdman]

49 minutes ago, El Presidente said:

This buffoonery causes serious angst. 

I would like to know whether the dart board they’re using to determine policy was made in China. The public has a right to know!

[Chibearsv]

[El Presidente]

It is really important at times like this to practice equanimity.

With that in mind, I have made the decision to go to gym, call 3 mates, call an Uber, go for a long long lunch at Moda. 

[riderpride]

It's quite the ride

[Chas.Alpha]

2 hours ago, El Presidente said:

This buffoonery causes serious angst. 

I will not be giving you the opportunity to ban me for a week on this occasion. 🙂

[WestCoastSmokin]

16 hours ago, VeguerosMAN said:

The EU has placed a 25% tariff on US tobacco, so I am guessing the prices will increase for NCs coming into Europe. 

Isn’t it already like 3x the price that NC’s are in the US? 

14 hours ago, sudoslash said:

This isn't the behavior of a healthy market 😅 but greed during the fear was rewarded handsomely today! 

Clear as day, insider trading going on with the way the markets surged today. Still down a lot though. Will see where the roller coaster takes us next! 

[El Presidente]

4 minutes ago, WestCoastSmokin said:

Isn’t it already like 3x the price that NC’s are in the US? 

European taxes are largely based on tobacco weight and not wholesale price. It is why a Padron is not much different in price to a similar sized Partagas

[WestCoastSmokin]

7 hours ago, El Presidente said:

European taxes are largely based on tobacco weight and not wholesale price. It is why a Padron is not much different in price to a similar sized Partagas

Ah ok thanks for the explanation, I read on here somewhere that a $35 cigar in the US was like close to $100. That may just be the Arturo Fuentes or like Plasencia cigars. 

[El Presidente]

7 hours ago, WestCoastSmokin said:

Ah ok thanks for the explanation, I read on here somewhere that a $35 cigar in the us was like close to $100. 

That would be about right. 

Dog rocket factory second Dominican Churchill would be duty taxed the same as a Cohiba Esplendido.

[VeguerosMAN]

7 hours ago, WestCoastSmokin said:

Isn’t it already like 3x the price that NC’s are in the US? 

The prices are still the same here.

7 hours ago, WestCoastSmokin said:

Clear  as day, insider trading going on with the way the markets surged today. Still down a lot though. Will see where the roller coaster takes us next! 

The market could explode if the CPI numbers are good. 

[El Presidente]

Came back from a good industry lunch. I have 12 phone calls to return for NC manufacturers selling into China/HK. I have no answers. 

The NC China/HK business is in flux. It has been their (NC) growth business since 2020. 

Small potatoes in the scale of things but jobs (export/regional expansion positions) are certainly at risk. All I can say is leave it another week.  

A 4 Negroni day. 

[bmac]

What has the COVID tariff cost CC smokers? 104% to date?

[El Presidente]

12 hours ago, bmac said:

What has the COVID tariff cost CC smokers? 104% to date?

So true. 

It is very rare for manufacturers/wholesalers/retailers to get a free swing at increasing margins with no pushback. I suspect we are entering a new period where this will be possible for certain players. 

[El Presidente]

I hope members made some money on today's markets spike 

I went deep on Melania coin. 

[BlueWS]

I bought a small position in NVDIA at the April low. I'm up 6 ten count boxes of Lusitanias. I count everything in Cuban cigar box prices now. 😁

[yuppie]

What a terrible year to start building my collection.

[CaptainQuintero]

Part of the new UK-US trade agreement is that US tobacco products will have a significant cut, it will be interesting to see if that equates to anything significant at the checkout.