Tariffs threaten vapor industry

Proposed tariffs on US imports of vaping products from China could not come at a worse time for the industry, according to a story by Kara Carlson for Reuters.

New levies would increase prices just as the industry was facing slowing growth and a requirement to add new health warnings to packaging.

The Trump administration has threatened 25 percent tariffs on $200 billion worth of Chinese imports, including vaping devices and parts, in addition to the tariffs on imports worth $50 billion already imposed.

Vaping has surged in popularity in recent years, partly on health grounds and partly because of price.

But the tariffs could increase the price of a vape by about 15 percent, according to industry estimates.

Carlson said that such an increase would be particularly painful for an industry where consumers are highly sensitive to rising prices.

A study in the journal Tobacco Control estimated a 10 percent price increase in e-cigarettes would reduce sales by between 12 percent and 19 percent. The study noted that because many vapers were experimenting, rising prices could curtail future use.