Vapers are the latest casualties of the escalating China Trade War. On Wednesday, August first President Trump ordered new tariffs on Chinese products doubled from 10% to 25%. This increase affects $16 billion worth of Chinese imports, which include vaping items.
Vaping devices were not included in the first round of items hit with 25% tariffs on July sixth. When Trump announced those duties, China hit back. The organization then proposed a new 10% hike on $200 billion worth of Chinese products. Last Wednesday that figure rose to 25%. The new duties are set to take effect in multi month.
Higher-tariffs on Chinese-made vaping units means higher prices for American consumers and businesses. 91% of e-cigs imported into the United States come from China.
"Yes, it will hurt consumers, yes, it will hurt the business," said Tony Abboud, President of the Vapor Technology Association.
These new import duties are the latest threat to the development of the e-cig market. Last April, the FDA came down hard on vape retailers discovered selling to minors. One splendid spot has been that the FDA has pushed back the deadline for regulating e-cigarettes to 2022. E-cigarettes have made critical picks up over the most recent two years. Sales have gone up from 32 out of 2017, to 68% from June of a year ago. In the event that the proposition goes through, vapers will begin to see higher prices at their neighborhood vape shops.
What is the essence of this tax?
It is targeted at helping the American business as per President Trump. There are huge effects in trade wars and rarely do we have winners. Instead, the results may end up being more terrible and agonizing.
The vaping business has plans to oppose the new tariffs. Vaping backing bunches intend to campaign the Office of the US Trade Representative. They need to demonstrate how the new tariffs won't rebuff China, just American e-cig users, and retailers.
Vaping Industry Will Suffer From Trade War Developing Over New Tariffs
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