Perdomo Cigars Implements Price Hike in Response to Tariffs

Perdomo Cigars is raising prices for the second time in 2025, citing new U.S. tariffs on Nicaraguan imports. The company says it aims to absorb much of the impact but can’t avoid a modest increase for consumers.

Effective Thursday, 1 May, Perdomo Cigars will be increasing its cigar prices by 25 cents across its portfolio. This marks the second price adjustment of the year for the company, which previously enacted a similar increase earlier in 2025.

The reason behind the latest hike? A newly imposed 10% tariff on premium handmade cigars imported from Nicaragua, a key cigar-producing nation and the exclusive origin of Perdomo’s products. The tariffs, announced by former President Donald Trump on 2 April as part of a broader trade action, were initially set at 19% for Nicaraguan goods but later “suspended” to 10% for 90 days.

Nick Perdomo Jr., President and CEO of Perdomo Cigars, addressed the issue directly in a press release:
“This government-mandated cost affects every manufacturer in our industry. Once again, we are called to protect our customers, the end consumers, and our employees while navigating the challenging business environment we all face today.”

Perdomo Jr. emphasised that the company is absorbing most of the cost burden, describing the 25-cent increase as a “balanced approach.” However, due to the structure of U.S. tariffs and how they affect wholesale pricing, consumers will likely feel a sharper impact at the till.

Unlike state tobacco taxes, which are based on wholesale pricing, tariffs are applied to the “direct import price” and get baked into the wholesale cost. This means that for the average cigar smoker, the 25-cent increase could translate into an additional 50 cents or more per stick once state and local taxes are added.

Perdomo’s move may be the first in a wave of price hikes. According to a survey done by our friends of  halfwheel, roughly half of surveyed cigar companies indicated they would consider raising prices if the tariffs remain in place. While the full industry response is still unfolding, it is clear that consumers should prepare for elevated prices across the board—especially on cigars originating from tariff-affected nations such as Nicaragua, Honduras, and the Dominican Republic.

As manufacturers grapple with fluctuating trade policies and mounting costs, cigar lovers may want to stock up while current inventories still reflect pre-tariff pricing.