How The New Trump Trade Tariff Law's Affect Your Vape Pricing
Whether vapers or entrepreneurs, everyone has fallen a victim to China Trade War. Earlier this month, a 25% US Tariff has been imposed on vape hardware and products imported from China. The move results in more expensive vaping devices.
Tony Abboud, President of the Vapor Technology Association, confirmed in a press release that the new Chinese tariffs are going to hit vape industry very hard. The new move is going to affect entrepreneurs and vapers, Mr Abboud added.
The new import duties have come at a time when the e-cigarette market was experiencing a significant gain. In the last one year, sales have gone up by 36% (from 32% to 68%). With the new tariffs, prices of vaping devices will increase more.
- What Is US-China Trade War?
In a recent interview, US President Donald Trump cleared his stand on the US-China Trade War. According to him, it is the time to take a stand on China as the East Asian country has been hurting the US for a long time.
The new tariffs are going to impose a 10% duty on products imported from China to the US. In the coming year, the import duty may rise to 25%. In July this year, a 25% tariffs on $34 billion of imported Chinese goods was imposed as a part of president's tariffs policy. In a reply, China has imposed similarly sized tariffs on US products in the country.
Foreign solar panels were the first victim of the ongoing trade war in 2018. In January, President Trump announced a 30% tariff on solar panels. The same day, a 20% tariff was announced on washing machines.
The new tariffs are a growing threat to the US vape industry. Although vaping devices imported from China weren't a part of the first round of tariffs, they were added recently.
- How Will New Tariffs Impact US Vape Industry?
More than 90% vape products in the US are made in China. The 25% tariffs on the products will result in high prices at local vape shops. US vapers are not going to have a choice between Chinese vape products and American products.
Some experts believe that consumers are not going to experience an immediate surge in the prices. Distributors and wholesalers already have products to sell. It will give them the time to identify which products they should import and which can be manufactured in the US, they added.
There are some experts who believe the tariffs may help US vape industry to rise. It will give US manufacturers an opportunity to manufacture products for own country's people.
- Why Does The US Import Vape Products From China?
Chines manufacturers have been making vape devices since 2003. They understand the demands and have manpower at cost-effective prices. In a country like the US where the cost of manpower and materials is higher than the prices in China, manufacturing high-quality vape products inexpensively isn't easy. American manufacturers do not have those skills and resources to create high-quality vaping devices.
Apart from that, FDA is deeming vaping regulations in 2022. In such a situation, no one is going to invest in a sector whose future is uncertain.
- Final Words: How US Vape Industry Plans To Deal With Tariffs?
According to people closely associated with the US vape industry, it is going to oppose the new tariffs. There are plans to schedule a meeting between vaping advocacy groups and the Office of the US Trade Representative. They will try to convince the office that the new tariff will not affect China but vapers and manufacturers in the US.
As of now, no one can tell how the US-China Trade War will be resolved. Vape users are advised to stockpile their favorite vape products.