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How President Trump's Tariffs Affect The Vape Industry

August 29, 2018

As President Trump continues to wage a trade war, the vapor Industry is set to be hit with a 25% tariff on all Chinese-made products, which includes 91% of the vaping hardware sold in the US. Although these tariffs are intended to hurt China, who has been accused of unfair trade practices, it will also have a large impact on American consumers who ultimately have to pay the tariffs.

What are Tariffs?

Tariffs are border taxes charged on imported goods, which the importer must pay. These taxes are collected by customs officials and are paid to the government that has imposed them. Tariffs are generally used to protect domestic manufacturers, by raising the costs of importing products. This is typically seen in the agricultural sector, which has the highest average tariffs globally. The global average for goods tariffs is at 2.9% and has been declining rapidly over the past few decades as more and more ‘Free Trade’ deals have been put in place. Tariffs can also be used to prevent a country from ‘dumping’ cheap excess goods into another country and flooding their market.

What does this mean for you, the consumer?

Unfortunately, because 91% of all vaping products come from China, this will mean increased costs for importers which will be passed down the supply chain and end with the consumer. No US manufacturers are willing to take on the production of these products until after 2022 when the landscape for the industry will be more clear and large investments in manufacturing will be safer. While we haven’t seen an increase in our costs yet, we expect to see a rise in costs of 15-25%. These tariffs will be coming in two waves. The first wave, which includes any finished hardware product (mods, tanks, kits, pod devices). The second wave will include coils, pods, and other consumable vapor products. We will be delaying price changes to keep your costs low for as long as possible, however you should expect to see increases in price on these products over the next few weeks and months.  

Is there anything we can do to stop this?

Congress has the ability to step in and take action to stop these tariffs and the trade war. If you are unhappy with the tariffs, you should contact your State’s Representatives and Senators and encourage them to take action. Let them know that punishing Americans with unnecessary taxes only hurts us and does nothing to address China and their trade practices.

Is there any good news?

YES! Because we make our e-liquid right here in Michigan, there will be no effect on our e-liquid cost, and you can continue to enjoy the everyday low pricing you have come to love.

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