New Ruling Throws Cigar Industry Into Limbo: Clown Car loses a wheel.

[El Presidente]

Note: US politics has always been offlimits unless it pertains to cigars. 

Keep it to cigars people 

So this is why I am pissed and venting

• Shipment from Honduras delayed a month while clearance brokers navigate new tariff regime of 10%. 
• Good to go. First shipment out. Going through customs now with the major shipment next week. 
• Ruling yesterday. 
• No one knows what is going on.  Clearance delayed while they try to work it out. 
• Is 10% still payable? If paid and the appeal loses, are we refunded? what would be the process? 
• What about tariff's implemented over the past 45 days already paid? 

I have no problem with tariffs where they protect domestic industries for the right reasons. I do have a problem with shoot from the hip policy where T's aren't crossed and i's aren't dotted. 

F me...what a time to go dry 

 

Brief summary for those not familiar. 

 

[Cigar Surgeon]

Charlie has a good article up as well: 

https://halfwheel.com/six-thoughts-why-those-tariff-price-increases-arent-going-away/452022/

 

[MrBirdman]

Welcome to the American juristocracy, where most political questions eventually become judicial ones!

Unfortunately you won’t have clarity even on the injunction until the Supreme Court weighs in. Very hard to predict but I would lean (very slightly) towards them staying the injunction while appeals are heard.

As to your question on past shipments, the current decision from the district court orders that any IEEPA tariffs collected be refunded. But don’t expect a check anytime soon.

[cigaraholic]

Shooting from the hip, 🤪🤪🤪🤪we’re shooting from the toilet!🕳️

[BlueRidgeFly]

Tariffs on cigars are clearly not intended to protect American cigar producers. We don't produce enough to satisfy domestic demand (or produce many GOOD cigars at all). We couldn't if we tried, even if price was not considered. It is yet another tax on cigars here and amounts to yet another thing to make it harder to enjoy cigars. Not sure why tf we're doing this, or why anyone (like Tim in the video posted above) would just say it's no big deal.

[MrBirdman]

I’ll add that even if the current tariffs are left in place pending appeal, there’s a pretty good chance the admin will be enjoined from implementing any new or planned tariffs under the IEEPA. So at least there would be some stability for a couple months. 

[BlueRidgeFly]

I decided to ask ChatGPT to analyze this a bit, based on my pro-Central American cigar industry and US cigar consumer bias, of course 😀 and it was interesting.

https://chatgpt.com/share/683915c5-7eec-800e-bc2e-a3e6c887e9df

[LordAnubis]

Can I ask. Why even base your business from America? Can’t just ship out of Honduras? I mean sure you have lots of customers there and they’ll cop the tarrif. But for everyone else in the world surely easier to ship direct from factory no? Obviously I know absolutely nothing of the business. 

[El Presidente]

10 hours ago, LordAnubis said:

 Obviously I know absolutely nothing of the business. 

That's obvious . e-commerce doesn't work from 3rd world latin American countries.