Category: News This Week

Wang: Global Trade Tariffs in Vaping
The vaping industry has always faced its share of challenges—from shifting regulatory landscapes to evolving consumer preferences. However, a few factors significantly threaten the industry’s future, such as the impact of global trade tariffs. With the United States set to increase tariffs on Chinese imports, companies that fail to adapt could face skyrocketing costs, disrupted supply chains, and a diminished ability to compete in one of the world’s largest markets.
Trade tensions between the U.S. and China have been escalating for several years. The vaping industry, which relies heavily on hardware manufactured in China, is particularly vulnerable to these developments. Currently, vaping products imported from China face a 25% tariff, but there is a high likelihood that this could double or even increase to 100% under future U.S. administrations.
For vaping companies, such tariff hikes mean the cost of importing devices could skyrocket. A 100% tariff would effectively double the cost of hardware produced in China, driving up retail prices for all such products in the U.S. market. This scenario threatens the financial viability of vaping companies and the availability of affordable, high-quality products for consumers.
The Strategic Decision to Move Manufacturing to Malaysia
Recognizing the potential for increasing tariffs and broader geopolitical challenges, some vaping manufacturers began shifting their operations from China to other countries. Such decisions were never made lightly. China has long been a global leader in manufacturing efficiency with a robust infrastructure and supply-chain network,, and moving away from such an established infrastructure posed significant logistical and operational challenges.
Malaysia offered several key advantages to manufacturers. Firstly, Malaysia enjoys favorable trade agreements with the United States, the United Kingdom, and the European Union. For instance, starting in December 2024, a new free trade agreement between Malaysia and the U.K. took effect, eliminating tariffs on products moving between the two countries. Similar agreements are in place or in development with other major markets.
Secondly, Malaysia’s robust manufacturing ecosystem and skilled workforce make it an ideal location for high-quality production. By establishing operations in Malaysia, companies can continue to deliver reliable, innovative hardware without the added burden of excessive tariffs.
The Broader Impact on the Global Supply Chain
The shift to Malaysia reflects a broader trend in global manufacturing. As trade barriers between the U.S. and China grow, a widespread redistribution of manufacturing operations is underway. Companies across industries—not just vaping—are reevaluating their supply chains to reduce dependence on any single country.
This global redistribution of resources presents both challenges and opportunities. For manufacturers, the challenge lies in building new infrastructure, securing reliable suppliers, and maintaining quality control in unfamiliar territories. However, companies that successfully navigate these changes benefit from more resilient supply chains, reduced geopolitical risk, and greater flexibility in responding to market shifts.
Maintaining Compliance and Quality Standards
Shifting manufacturing bases also brings new compliance considerations. Regulatory bodies like the U.S. Food and Drug Administration (FDA) require Premarket Tobacco Product Applications (PMTAs) for vaping devices. These applications are tied to specific manufacturing facilities, meaning that changing production locations requires amendments to existing PMTAs or new submissions.
Manufacturers must ensure that new facilities meet the highest quality and compliance standards. Proactively managing these regulatory requirements ensures that products remain market-ready even as production locations change.
The Future of the Vaping Industry Amid Trade Challenges
Looking ahead, it’s clear that trade tariffs and global manufacturing shifts are not short-term challenges. Regardless of who occupies the White House, protectionist trade policies are likely to persist or even intensify. The vaping industry must be prepared for this new reality.
Companies that fail to diversify their manufacturing operations face mounting costs and increasing vulnerability to trade disruptions. On the other hand, those who invest in flexible, resilient supply chains will be well-positioned to thrive.
The vaping industry is at a crossroads. Global trade tariffs pose a significant threat, but they also offer an opportunity for companies to rethink their supply chains and build more resilient operations. For manufacturers, shifting production from China to countries like Malaysia is not just a reactive measure—it’s a strategic move to secure long-term growth and competitiveness.
As the industry moves forward, companies that adapt to these challenges will be the ones that lead the way. The ability to anticipate trade disruptions, embrace innovation and maintain rigorous quality standards will determine who succeeds in this ever-evolving market.
As co-CEO of Ispire Technology Inc., Michael Wang is a leader in the development and commercialization of vaping technology and precision dosing. Previously, he served in executive roles at The Pharm/Sunday Goods, Onestop Commerce, Zazzle, and Honeywell.
December 20, 2024
GSTHR Report Finds Vapes Help Smokers Quit
The latest Briefing Paper from the Global State of Tobacco Harm Reduction (GSTHR), a project from public health agency Knowledge·Action·Change (KAC), focuses on Aotearoa New Zealand’s remarkable journey towards “smokefree” status.
“Pro-consumer laws and an endorsement for vaping: why smoking is disappearing in Aotearoa New Zealand” tells the story of the country’s rapid and growing embrace of vaping, which overtook smoking in 2022, and provides another vital case study showcasing the potential of tobacco harm reduction through the adoption of safer nicotine products (SNP), following recent GSTHR Briefing Papers on Japan and the United Kingdom. This country profile also features in The Global State of Tobacco Harm Reduction 2024: A Situation Report published last month.
While Aotearoa, New Zealand, had been experiencing falling smoking rates for the last 50 years, this decline gathered pace following the widespread adoption and, in 2018, the legalization of nicotine vaping products. Thanks to the Government’s step change in vaping policy, Aotearoa New Zealand now has a considerable chance of reaching its “Smokefree 2025” goal, a designation indicating that smoking prevalence has been reduced to below 5%.
David MacKintosh, a director for KAC, said the Briefing Paper explores the rapid trajectory of Aotearoa New Zealand’s progress in reducing smoking, the approaches that have underpinned this, and the lessons that can be learned.
“By embracing vaping as a tool for smoking cessation, policymakers are accelerating the transition away from cigarettes and their associated harms,” he said. “More needs to be done in addressing high smoking rates in some groups, notably among Māori communities, which contributes significantly to health disparities in the country. However, the experiences and success of Aotearoa New Zealand provide food for thought for many other countries seeking to tackle smoking.”
This would be a remarkable achievement given the smoking rate in 1976 was 40% for men and 32% for women. This has now fallen to the point where only 8.3% of adults smoked in 2023. In the same year 11.9% of adults vaped in the country, up from 1.4% in 2016. But while the overall smoking figures are low, they mask much higher rates within some communities. Daily smoking prevalence for Maori, who make up 16% of the country’s population, was 17.1% in 2022/2023, which is in stark contrast to the 6.1% rate for people of European descent.
Alongside regulatory oversight of vaping products to ensure quality and safety, a key factor has been the proactive encouragement of vaping as a tool for smoking cessation by the Government. The Ministry of Health has provided official resources for people looking to stop smoking with the help of vaping. Smokefree New Zealand, a smoking cessation resource run by the country’s publicly funded healthcare service Health New Zealand, has stated that “using vaping products is a legitimate option for those people who are trying to quit smoking”.
Through the Vaping Facts website, the Ministry of Health of New Zealand and Health New Zealand have also emphasized the Cochrane Review’s position that vaping is significantly safer than smoking.
Aotearoa New Zealand’s attitude to vaping is in direct contrast to its neighbor Australia, which has heavily restricted the availability of SNP by making nicotine available only in pharmacies. Australia has sought to reduce significantly the availability of safer nicotine products, which has led to the proliferation of a thriving black market in the absence of a legal market. Meanwhile, with its broadly supportive public health messaging, Aotearoa New Zealand has enabled consumers to make positive changes in their own volition, enabling them to switch from smoking to safer products.
These differences in approach have resulted in a marked difference in smoking rates between the two countries, with Australia’s smoking prevalence plateaued in recent years after many years of steady decline. Indeed, the current smoking prevalence for Australians aged 14 and over has only fallen slightly in the last five years, from 12.8% in 2018 to 11.8% in 2023.
It should be noted that Aotearoa New Zealand’s attitude towards vaping is not mirrored for all SNP. While heated tobacco products are also legal, the sale of both snus and nicotine pouches is banned. Still, as this Briefing Paper shows, Government and public health organizations in Aotearoa, New Zealand, working with consumers, have highlighted the crucial role that vaping can play in reducing smoking.
The country has demonstrated its ability to enact pro-consumer legislation effectively, and its consistent endorsement of some safer nicotine products has been a key component of its stop-smoking strategy. Central to this has been consumers, who have established a demand for safer products and proven to the Government that these products can and will exist despite initial legislative opposition.
December 20, 2024
Denver, Colorado Again Passes Tobacco Flavor Ban

Credit: Marek Photo Design
On Monday evening, the Denver City Council passed the final reading of an ordinance that will ban the sale of flavored tobacco products in the city. The ban passed by a vote of 11-1.
The law, which still needs the signature of Mayor Mike Johnson, will go into effect in 90 days and will ban the sale of all forms of flavored tobacco, including cigars and pipe tobacco, as well as flavored vaping products. It does not apply to flavored tobacco intended to be smoked in a hookah that is sold at a hookah tobacco retailer.
Retailers who violate the ban will face suspensions of their privilege to sell tobacco products should they receive two or more violations within the one-year window. Suspensions start at least 30 days and increase to a year for four or more violations. Additionally, that window will go wider in the coming years; as of Jan. 1, 2027, two violations in two years earn a 30-day suspension.
A total of 34 individuals signed up to present comments to the council, which limited the public comment portion to 30 minutes before the vote. People came to speak in support of and in opposition to the ordinance; retailers told the council that a ban would hurt numerous businesses and cost the city tax revenue, as customers would take their businesses elsewhere. A council member indicated that 15 of the 18 municipalities that border Denver do not have similar bans in place.
Retailers also said they would shift sales to the unregulated black market while taking ancillary purchases, usually made at convenience stores, into other cities and towns. One retailer noted that 536 tobacco retail stores in the city will be adversely affected by the ban. Other retailers also said that the council failed to adequately work with retailers in developing the ban and enforcing its existing laws on sales to minors.
Speakers connected to law enforcement also suggested that it would fuel the growth of the black market, which comes with increased criminal activity and products of inferior quality that could pose an even greater health risk, Halfwheel reports.
The Cigar Association of America wrote to the council to oppose the ban, saying in a Dec. 3 letter that “this blanket approach is a disproportionate and ineffective attempt to address any issues of youth usage, especially considering that the only facts and allegations presented as justification for the Proposed Ordinance relate to other product categories – such as vapor and cigarette products.”
A representative from Mayor Mike Johnston told Denver7.com that “we’re committed to protecting youth health through common sense measures, and Mayor Johnston would be in support of this initiative should Council pass it.”
The ordinance does not make it illegal to use a tobacco product, with city representatives telling the council that a person would not be stopped and cited for using a flavored tobacco product.
In 2021, the Denver City Council passed a similar ban, only to have it vetoed by then-Mayor Michael Hancock. The council came up one vote short of overriding the ban.
December 17, 2024
China: STMA Appoints New Deputy Director

China’s State Tobacco Monopoly Administration (STMA) has appointed Liu Sanjiang as its deputy director, reports 2Firsts.
Previously, Liu served as the director of the department of quality development at the State Administration for Market Regulation,
This appointment follows a series of corruption investigations targeting senior STMA officials.
The STMA is the country’s official regulatory body overseeing the tobacco industry and market, including NGPs such as e-cigarettes.
December 16, 2024
Bangladesh Readies to Ban E-cigarette Imports

Bangladesh will ban the import of e-cigarettes and related products, reports bdnews24.
According to a statement issued by the cabinet division, the health services division proposed to take urgent measures to ban the import of all products tied to the electronic nicotine delivery systems or e-cigarettes “to protect public health and keep future generations safe.”
After the discussion, it was decided that e-cigarettes will be included in the list of banned products in the import policy order of the ministry of commerce.
December 16, 2024
PMI to Pay $1.2 Million for Violating D.C. Flavor Ban

VV Archive
Philip Morris International’s subsidiary Swedish Match North America (SMNA) will pay $1.2 million to settle an investigation into violations of Washington D.C.’s flavored tobacco ban.
The District of Columbia attorney general’s office said it had found evidence that SMNA facilitated online sales of “tens of thousands” of flavored Zyn nicotine pouches to D.C. consumers between October 1, 2022, when the ban was enacted, and June 30, 2024.
PMI, which acquired a 90% stake in Swedish Match for $16 billion in November 2022, must now monitor its distributor’s compliance with D.C.’s ban quarterly and stop sales of flavored Zyn pouches through Zyn.com and related e-commerce platforms, the AG’s office said on Friday.
Nicotine pouches became the second most commonly used tobacco product in the U.S., according to a report by the Centers for Disease Control and Prevention.
The tobacco giant suspended sales on Zyn.com after it had been issued a subpoena by the D.C. attorney general earlier this year, according to Reuters reports.
Swedish Match would continue to focus on its brick-and-mortar stores, PMI said in an emailed statement. Sales of Zyn, which PMI says does not contain tobacco, have surged, growing 41.1% in PMI’s most recent quarterly results.
The company, which has been looking to move beyond traditional cigarettes, has also expanded production to counter Zyn supply shortages in the U.S. amid a budding black market for nicotine pouches.
December 15, 2024
Online Shop Northerner Shifts to Tobacco-Free Future

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Northerner, an online seller of smokeless tobacco and nicotine products for 25 years, said starting this month, it will exclusively sell tobacco-free nicotine pouches and other modern oral nicotine products.
The announcement marks a new chapter in the company’s commitment to public health and the tobacco harm reduction movement, the Missouri City, Texas-based company said.
“Having been in the smokeless tobacco business for 25 years, the decision to move away from tobacco has not been easy,” said Sarah Krysalka, senior director of commercial partnerships and external affairs at Northerner. “But the trends are clear.
“More Americans are choosing tobacco leaf-free options, and we aim to stay at the forefront of this movement by offering the best assortment of modern oral nicotine products to meet the evolving needs of adult consumers.”
With the rise of non-combustible nicotine options like pouches, the company said it recognizes the need to adapt to the shifting market landscape and provide consumers with tobacco leaf-free and other modern oral nicotine product alternatives to combustible cigarettes, according to a press release.
“By leaving the tobacco market, Northerner will shift its focus to fulfilling the growing demand for nicotine pouches and other modern oral nicotine products,” said Krysalka. “Our goal is to cater to the changing needs of adult nicotine users while educating tobacco consumers about tobacco leaf-free nicotine alternatives.”
Northerner.com is a website operated by Northerner Scandinavia Inc, a U.S. subsidiary of Northerner Scandinavia AB and Haypp Group.
December 15, 2024
FDA Sends Nicotine Limits Proposal to White House

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The Biden administration has proposed a rule that would significantly lower the amount of nicotine in tobacco products. The U.S. Food and Drug Administration’s efforts to counter the dangers of the chemical in stretch back to 2018, when it first proposed the idea.
Then, FDA Commissioner Robert Califf went even further in 2022 and announced that the agency was developing a rule requiring tobacco companies to reduce the amount of nicotine in cigarettes.
The next step in that effort occurred Tuesday when the FDA finally submitted its refined proposal to the Office of Management and Budget. There won’t be any immediate changes to tobacco products. The approval process for the Office of Management and Budget can take months. There will also be a public comment period, and the nicotine industry often sues the government to stop new regulations.
“A proposed product standard to establish a maximum nicotine level to reduce the addictiveness of cigarettes and certain combusted tobacco products, when finalized, would be among the most impactful population-level actions in the history of U.S. tobacco product regulation,” the FDA said in a statement reported by CNN on Wednesday.
When the FDA announced its initial plans to reduce nicotine in 2022, it estimated that reducing nicotine levels could keep more than 33 million people from becoming regular smokers, that about 5 million additional smokers would quit within a year, and that 134 million years of life would be gained.
In the draft proposal from 2018, which the FDA has since refined, it cited a 2013 survey that found that reducing the total nicotine content of cigarettes to 0.5 milligrams per rod would minimize addictiveness. Still, it also said that questions remain with respect to the precise level of nicotine in cigarettes.
The agency’s proposal was met with high praise Wednesday.
“Once finalized, this rule could be a game-changer in our nation’s efforts to eliminate tobacco use,” said Harold Wimmer, president and CEO of the American Lung Association. “Making tobacco products non-addictive would dramatically reduce the number of young people who become hooked when they are experimenting. To fully address the toll of tobacco on our nation’s health and across all communities, it is critical to reduce nicotine levels to non-addictive levels in all commercial tobacco products, including e-cigarettes.”
Not all smokers would quit if nicotine levels were limited, experts say, nor would all smoking-related diseases disappear since tobacco products contain other chemicals that can be harmful to health.
December 12, 2024
VPZ, Morrisons Partner to Open 10 Vape Shops

Greig Fowler, director at VPZ
VPZ, a UK vaping retailer, is set to open 10 new stores by as part of a groundbreaking partnership with the supermarket chain Morrisons, with plans to expand further during 2025.
The new in-store outlets will expand the brand’s presence in communities throughout the UK, with
seven key locations in Leeds Hunslet, Birmingham Stirchley, Glenrothes, Peterhead, Darlington,
Stratford and Grantham.
The collaboration will also introduce a new innovative mobile pod concept for customer parking
areas, with two planned for Nottingham and one in Rotherham.
The partnership will drive positive change by making stop-smoking services more accessible in
communities throughout the country while educating smokers on the benefits of more sustainable
vaping products.
Greig Fowler, director at VPZ, said: “Our partnership with Morrisons to open 10 new stores is a
pivotal step in our mission to transform the health of our nation by empowering more people to
become smoke-free.
“I believe that together we will be making it easier for smokers to access the resources, help and
education they need to quit smoking, while also offering a convenient and sustainable shopping
experience.”
December 12, 2024
Qnovia Raises $16 Million in Series B Funding

Qnovia has raised $16 million in Series B funding. The financing was led by Blue Ledge Capital, Evolution VC Partners, Vice Ventures and Gaingels.
“This Series B financing marks a meaningful milestone for Qnovia as it provides validation for our RespiRx proprietary platform, our progress in the regulatory process and the potential for our inhaled drug delivery platform to improve patient outcomes. We are grateful for the partnership with our investors, who are committed to our vision of advancing the development of inhaled therapeutics for areas of high unmet need, starting with our focus on bringing innovation to medicines to support smoking cessation,” said Brian Quigley, CEO of Qnovia.
“Our recent infusion of capital will advance QN-01 beyond our Phase 1 clinical trial in the U.S. and support an MAA submission to the MHRA in 2026. We believe that the data we have generated for QN-01, which includes our positive first in-human clinical data and our nonclinical findings, significantly derisks our clinical development plan and accelerates commercial validation to support our MAA submission for an expedited path to revenue generation in the U.K. Overall, this financing brings us one step closer to our vision of transforming the treatment paradigm for smoking cessation for a population who has not had access to any new treatment options in several decades.”
Since its inception, Qnovia has raised $50 million to advance its proprietary inhaled drug delivery platform. Qnovia will use the proceeds from the recent financing to support the clinical, regulatory and commercial development of its RespiRx Nicotine Inhaler (QN-01) in the U.K. QN-01 has demonstrated clinical proof-of-concept in a first-in-human, Phase 1 study and received U.S. Food and Drug Administration clearance of its Investigational New Drug application. In addition, the company will use the Series B funds to evaluate the feasibility of additional therapeutic indications in their pipeline.
“We are impressed by Qnovia’s agility and speed in navigating the complex regulatory framework for the development of novel smoking cessation therapies,” said Andy Roche, founder and managing partner at Blue Ledge Capital. “We are confident that their groundbreaking platform will revolutionize smoking cessation as well as drug delivery broadly as a result of its dose-to-dose consistency and favorable pharmacokinetic profile. We are honored to share that journey with the Qnovia team.”
December 12, 2024