The second Trump administration’s first round of punitive tariffs on Chinese products went into effect on Feb. 4. These new tariffs impose a 10 percent across-the-board levy on Chinese imports, including most vape products used by American consumers.
China responded swiftly, introducing retaliatory tariffs: 15 percent on coal and natural gas, and 10 percent on crude oil, farm machinery, and certain automobiles. According to law firm Sidley Austin, the U.S. tariffs include an anti-retaliation clause that allows President Trump to increase the 10 percent tariff or introduce additional levies if China escalates its own measures.
Tariffs Are Paid by Consumers, Not Foreign Governments
Tariffs function as import taxes, raising the cost of foreign products to create a competitive advantage for domestic manufacturers. However, since mass-market vape devices are not produced in the U.S., these tariffs primarily burden American importers, wholesalers, retailers, and consumers.
A common misconception is that tariffs are paid by foreign countries. In reality, they are costs absorbed by American consumers in the form of higher prices. The Tax Foundation noted that Trump’s 2018-19 tariffs represented “one of the largest tax increases in decades.”
Chinese Vape Products Now Face a 35 Percent Tariff
For vapers, the new 10 percent tariff adds to an existing 25 percent tariff introduced during Trump’s first administration and later upheld by the Biden administration, which also imposed additional tariffs on China. Since August 2018, vapers have been paying the 25 percent surcharge on Chinese-made vape products.
Both tariffs apply to all Chinese vape devices, including mods, batteries, and pod-based or disposable vapes. These fall under Section 301 of the Harmonized Tariff Schedule of the United States—specifically, items HTS 8543.70.9930 and HTS 8543.70.9940.
While the additional 10 percent tariff may not immediately drive up vape prices, its impact depends on various factors. In 2018, Mi-Pod co-founder Geoff Habicht told Vaping360 that manufacturers, importers, and wholesalers might absorb some of the cost depending on product profit margins. Chinese parts suppliers could also lower prices temporarily to keep manufacturers competitive, according to media reports.
With ongoing inflation, consumers may not immediately notice the impact of this new tax. However, if tensions between the U.S. and China continue to escalate, further tariffs could have more significant economic consequences.
