Vaping industry decries U.S. tariffs targeting e-cigarettes

May cost American jobs and push more people back to cigarettes, retailer warns

COLUMBUS, OHIO— Bryan Robbins smoked for 35 years before vaping helped him quit and prompted him to ditch driving trucks for selling e-cigarettes, first at flea markets and then at his own retail shops in Mississippi.

The 52-year-old is a Donald Trump supporter who agrees with the president’s efforts to crack down on China’s trade practices, but it’s hitting close to home. The next round of proposed duties — 25 per cent on $16-billion (U.S.) worth of Chinese imports that could go into effect in a month — includes vaping devices. Most e-cigarettes are made in China, leaving Robbins and his peers without an alternative.

“It might be good for the trade deficit in the long run, but how many stores is it going to put out of business in the short term?” Robbins said.

Robbins, whose e-cigarette devices sell for $25 to $130, says the tariffs will mean higher prices that will depress sales — hampering the growth of a nascent market. He and other advocates are pressing the Office of the U.S. Trade Representative to spare the devices on grounds they will cost American jobs, won’t change China’s trade behaviour and could push people back to cigarettes.

The potential tariffs would hit the surging industry as it faces efforts by the Food and Drug Administration to limit sales to minors.

Adding tariffs on e-cigarette devices won’t meet the administration’s goal of addressing allegations of Chinese intellectu- al property theft, vaping advocates said, nor will it boost U.S. jobs. There are no realistic prospects for anyone to open a factory in the U.S. until a 2022 deadline by the FDA clarifies which products are approved for sale, they say.

Vaping advocates have asked to testify at a hearing July 24 and 25 in Washington on the next round of 25 per cent tariffs, which includes their products.