Top Takeaways:

• Early 2025 U.S. premium cigar imports fell 8.7% year-over-year, signaling a potential market adjustment following the pandemic-era surge.
• The decline is not tariff-related, as new tariffs were announced in April 2025, after the reporting period.
• Major exporters—Nicaragua, the Dominican Republic, and Honduras—all experienced shipment decreases, with Honduras seeing the steepest drop at 19.3%.

The U.S. premium cigar market experienced a notable downturn in the first two months of 2025, with imports totaling 48.4 million units—a decrease of 8.7% compared to the same period in 2024, according to the Cigar Association of America (CAA) .

This decline follows a period of significant growth in the industry, where imports rose from 338 million in 2019 to a peak of 465 million in 2022. In 2024, the market slightly rebounded, with imports reaching 430 million, up 0.9% from 2023.

The three primary suppliers of premium cigars to the U.S.—Nicaragua, the Dominican Republic, and Honduras—each reported shipment decreases in early 2025:

• Nicaragua, the largest exporter, shipped 29 million cigars, down 9.3% from the previous year.
• Dominican Republic saw a 4.1% decline, with 12.5 million cigars exported.
• Honduras experienced the most significant drop, with shipments falling 19.3% to 6.2 million cigars.

Collectively, these three countries account for approximately 99% of U.S. premium cigar imports.

Tariffs Not a Contributing Factor

While new tariffs on certain cigar imports were announced in April 2025, they did not impact the reported decline, as the data covers January and February. Industry analysts attribute the downturn to market normalization following the pandemic-induced surge in cigar consumption.