Tariffs Trigger Widespread Cigar Price Increases Across Leading Brands
Major cigar manufacturers including Perdomo, Southern Draw, JRE, CLE and RoMa Craft are raising prices in response to tariffs imposed by the Trump administration. While these increases vary, nearly half the industry is expected to follow suit.
In the wake of new tariffs introduced by President Donald Trump on imports from all countries except Russia and North Korea, both countries without cigar production, several premium cigar companies have begun raising prices across their portfolios. The first to break the news was Perdomo Cigars, attributing the increases directly to the administration’s trade policy—despite earlier political assurances that foreign governments would bear the brunt of these tariffs, not American businesses or consumers.
Perdomo may have been the first, but they certainly won’t be the last. According to a survey conducted by Halfwheel, nearly half of the cigar industry is preparing for similar price hikes. The reality is stark: even with added tariffs, cigars remain cheaper to produce abroad than to manufacture domestically. The notion that these trade policies will restore job opportunities to the U.S. is economically unrealistic. Not only would domestic labour dramatically increase production costs, but raw tobacco would still face import tariffs—leading to prices potentially doubling or tripling.
Several brands have already followed Perdomo’s lead:
• JRE Tobacco Co. (makers of Aladino) will raise prices by 15–30 cents starting May 10.
• Southern Draw Cigars has announced a 30-cent increase per cigar due to the new 10% tariff on Nicaraguan imports. The company warns that further hikes may follow if the tariff climbs to 18–19%.
• CLE Cigar Co., including the Asylum brand, is adjusting prices based on cigar ring gauge: up to 52 will increase by 20 cents, while 54 and up will rise by 30 cents. Christian Eiroa, CLE’s founder, expressed disappointment, stating they had hoped the tariffs would be reversed.
• RoMa Craft Tobac is implementing price hikes effective May 5, citing variability based on margins. While most increases are under 5%, some SKUs will rise by more than 10%. Interestingly, co-founder Skip Martin confirmed that prices will not decrease even if tariffs are later repealed, aiming to preserve retailer inventory value and maintain pricing stability.
It’s important to note that the tariffs are applied to the import cost, not the wholesale or retail price. As such, the impact is magnified at each stage of the supply chain. A modest 20-cent increase at wholesale could mean a 40–50 cent rise—or more—for consumers, especially in states with additional tobacco taxes.
This development represents a significant shift for the premium cigar market. Retailers may face resistance from consumers unaccustomed to these sudden hikes, and brands will need to work harder to justify the price increases—whether through quality assurance, promotional support, or added value.
As this situation evolves, Cigar Inspector will continue to monitor and report on its impact across the industry.
