Perdomo Cigars announced a second price increase of 25 cents per cigar, effective May 1, 2025, attributing the hike to newly imposed U.S. tariffs on premium handmade cigars imported from Nicaragua. This follows a similar increase earlier this year aimed at offsetting rising manufacturing costs.
“As you may know, a new 10% tariff has been imposed on premium handmade cigars imported from Nicaragua, where every Perdomo cigar is proudly crafted,” said Nick Perdomo Jr., president and CEO of Perdomo Cigars. “This government-mandated cost affects every manufacturer in our industry, and 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.”
The 10% tariff, initially proposed at 19%, was reduced following a 90-day suspension period. The tariff applies to the “direct import price,” not the wholesale or retail prices, meaning consumers may see a more significant increase. Halfwheel Co-founder Charlie Minato noted that “the 25-cent increase is effectively 50 cents for consumers, though it will end up being more once state tobacco and sales taxes are applied.”
Earlier this year, Perdomo increased prices by 25 cents per cigar across several lines, including the 30th Anniversary, 20th Anniversary, Double Aged 12 Year Vintage, Habano Bourbon Barrel-Aged, and Inmenso 70 lines, citing increased manufacturing costs. The Perdomo Fresco line saw a 30-cent increase.
The U.S. remains the largest market for premium cigars, with imports reaching record highs. In the first three quarters of 2024, the U.S. imported 314.7 million premium cigars, a 3.8% increase from the previous year. Nicaragua continues to be the leading exporter, accounting for approximately 59.3% of these imports, according to Halfwheel
The new tariffs are part of broader U.S. trade measures targeting Nicaragua over concerns about human rights and democratic governance. While the cigar industry is not directly covered under the Central America Free Trade Agreement (CAFTA-DR), the tariffs represent a significant shift in trade policy affecting Nicaraguan exports.
Perdomo’s decision may prompt similar actions from other cigar manufacturers as the industry adjusts to the new economic landscape. The long-term impact on consumer prices and market dynamics remains to be seen.
