The Tariff Price Increases on Cigars commence.

[El Presidente]

With no sign of the clown car doing a U turn on this, cigar companies have commenced the price increases. 

 

Oscar Valladares Tobacco & Co. has joined the growing list of premium cigar companies that have announced plans to increase prices in response to the recently implemented tariffs on many foreign-made goods.

“As you are aware, the U.S. government has recently implemented a new 10% tariff on all imports from Honduras. This change directly impacts our industry and our operations, making it increasingly challenging to absorb the additional costs without affecting our pricing,” the company wrote in an announcement. “After careful consideration, the company has made the difficult decision to implement a 10% increase to our current price list, effective starting Monday, May 19. We understand that price adjustments are never ideal, but this step is necessary.”

A representative of the company told halfwheel that “if anything changes in the future, we will be back to our original prices.”

 

I do love that last line.  

 

 

 

[LordAnubis]

Question, any word on if the price increase is only for US? Would they also implement the price increase everywhere else? Trying to pull a Sony and increase price globally to recoup some revenue from the expected lower sales in America. Craziness. 

[El Presidente]

6 hours ago, LordAnubis said:

Question, any word on if the price increase is only for US? Would they also implement the price increase everywhere else? Trying to pull a Sony and increase price globally to recoup some revenue from the expected lower sales in America. Craziness. 

If you are importing into US and shipping out of the US, prices will need to increase for all as the Tariff is payable at time of importing. 

If you are shipping from Central America out to Asia or European warehousing then only the into US prices should increase (10% Tariff on way in for US purchasers).

 

[VeguerosMAN]

Most likely, the US will get rid of all 10% tariffs soon as they have made a deal with China.  I think the tariffs were used as leverage to bring new and old investments back to the states. Even with 10% tariffs, there aren't significant increase in cigar prices.

[99call]

I hear if you shoot yourself in both feet, you get a free pair of red socks