Tariffs on Chinese Vapes Will Hit 79%

Vaping products imported from China will soon be subject to a 79 percent tariff rate after the Trump administration announced Wednesday it would add a nearly across-the-board 34 percent tariff on Chinese imports. The tariffs take effect April 9.

Vapes were already tagged with a 45 percent tariff—a combination of an existing 25 percent Trump tariff in place since 2018 that was extended under President Biden, and two rounds of new 10 percent tariffs imposed earlier this year. The new tariff will be added to the existing ones.

Nearly all mass-market vaping products are made in China, although some manufacturers have expanded to other Asian countries. There is no significant vape device production in the United States.

Tariffs are taxes added to imported products. They are intended to give an economic advantage to American companies making similar products by increasing the consumer cost of the foreign competition. But since there are no U.S. vape device manufacturers, the tariffs will simply punish American importers, wholesalers, retailers, and ultimately consumers.

Retail prices may not reflect the entire tariff 

The tariffs apply to all Chinese-made vape devices, including mods, atomizers, batteries, and pod-based and disposable vapes. The tariffs fall under Section 301 of the Harmonized Tariff Schedule of the United States—items HTS 8543.70.9930 and HTS 8543.70.9940.

How much of the 79 percent tariff will be passed on to consumers is impossible to determine. Costs can be partly absorbed by sellers or buyers at any step in the supply chain. The greater the profit margin on any particular product, the more likely part of the tariff cost will be eaten by manufacturers or wholesalers. Parts suppliers in China could also temporarily lower prices to manufacturers to help them stay afloat during a challenging economic period.

But with total tariffs adding up to 79 percent of the wholesale cost, it’s certain that some part of that expense will hit consumers in the wallet.  

China retaliates immediately

The Chinese tariffs are part of President Donald Trump’s new plan to impose tariffs on imports from almost every country in the world. The Wednesday announcement shook stock markets across the globe. American markets saw their biggest declines since the 2020 COVID-19 pandemic.

China retaliated immediately, announcing reciprocal 34 percent tariffs on all U.S. products exported to China, which will hit American farmers especially hard. Following the 2018 tariffs, the Trump administration spent over $20 billion to bail out farmers affected by Trump’s trade policies. However, many family farms were forced into bankruptcy.