President Donald Trump has announced a 90-day pause on the reciprocal tariffs planned against many countries with which the United States trades.
The pause gives a temporary reprieve against planned reciprocal tariffs for Nicaragua and the European Union, each of which had 18 and 20 percent planned tariffs, respectively. The pause does not affect the uniform 10% tariff that went into effect on April 5. Not only will Nicaragua and the European Union still be subject to the 10% tariff, but it also applies to Costa Rica, the Dominican Republic, and Honduras. Mexico (along with Canada) is not subject to the Universal Tariff.
Of note, the tariffs on Chinese imports have increased to 125%. China is a country where many accessories are made.
In a statement Mike Copperman, Executive Director of Cigar Rights of America, stated: “The tariff pause is a welcome development for our industry; however, we remain vigilant on finding a sustainable solution as any long-term uncertainty in trade policy has real economic consequences for our small business industry and our core partner countries.”
The reciprocal tariffs and their impacts on the cigar industry remain a developing story.
