Top Takeaways:
- Rocky Patel holds prices steady for nearly all cigars amid Trump’s new tariffs—only the Java line sees an increase.
- Strategic absorption of costs: The company credits its Nicaragua and Honduras factories and efficiency gains for covering tariff expenses.
- Market-wide impact: Most cigar makers have passed tariffs to consumers; RPPC’s move eases retailer pricing pressure but only partially offsets margin squeezes.
Rocky Patel Premium Cigars (RPPC), Inc. announced today that, unlike many of its competitors, it will absorb costs associated with President Trump’s April tariffs—opting not to raise prices on most of its cigar lines. However, the company confirmed that the Java line, produced by Drew Estate, will see a price increase due to its external production.
In a letter to retailers, CEO Rocky Patel stated: “Through strategic planning, enhanced efficiencies, and a steadfast dedication to our customer relationships, RPPC has made the decision to absorb these increased costs and will not be implementing any general price increases or tariff surcharges, except for the Java brand.” He added that Drew Estate will increase Java prices “to match the tariffs.”
Java cigars will see an estimated MSRP increase of $0.70 to $0.75 per cigar. The broader portfolio—manufactured in RPPC’s own Estelí, Nicaragua factory and in Plasencia-owned facilities in Danlí, Honduras—will remain unchanged. Production in those facilities avoids tariffs due to their country origins being exempt under Trump’s earlier April announcements.
Trump’s initial April 2 tariff framework imposed a 19% duty on Nicaraguan cigars and 10% on Honduran ones. Although Nicaragua later received a 90-day suspension that lowered the rate to 10%, duties on Chinese imports ultimately reached 145%. These tariffs apply to the wholesale cost basis, so price hikes often extend to final retail prices and fuel increased tobacco taxes in some states.
Almost every cigar manufacturer surveyed by top cigar industry blog halfwheel planned price bumps in response—yet RPPC’s move to hold prices steady, save for Java, provides a temporary reprieve for retailers and smokers.
On May 28, a U.S. trade court ruled the tariffs unconstitutional; a companion ruling followed on May 29 in D.C. Both remain under appeal. Many companies have already incorporated tariffs into current shipments, complicating future price reversals, which many say will never transpire.
Analysts note RPPC and other firms that have absorbed or itemized tariff costs in invoices may more easily revert pricing if and when tariffs are revoked. But the volatile trade environment and potential for reinstated duties mean many manufacturers may elect to maintain higher prices.
