Everyone seems to be talking about the tariffs passed by the current administration, and for good reason. It’s all rather heavy-handed and introduces extra fees for many of the countries we do business with, including Nicaragua, the Dominican Republic, and many of the similar regions where our best tobacco comes from.
The Premium Cigar Association (PCA) has put out a call to action to work with that administration in hopes of alleviating some of the burdens these tariffs will introduce, specifically for the premium cigar market. Ignoring any political overtones or undertones, I’m less optimistic for as long as these tariffs remain in place. They will increase the costs of products, including cigars, and those costs will be passed on to the average consumer.
But tariffs or no, the current prices of most premium cigars will continue to rise in the years ahead for many reasons.
Recently, fires hit Aganorsa Leaf and the AJ Fernandez factories, among others. That alone will cause disruption not just in the production times but also financially. Cigar makers will see higher operating costs, shrinking profits, and so on. Manufacturers don’t have much choice but to pass on those costs to consumers, one way or the other. They have to make up the deficit and recover, and the best and most obvious way to do that is to increase the price of available inventory.
Then we have the rising costs of all products across the board, not just cigars. Also, inflation, national debt, and ballooning operating costs for most organizations. For the companies that do care — and these days that seems few and far between — employee wages will need to rise, as well, to keep up with the way of the world.
Everything auxiliary to the world of cigars is increasing in price, too. The wood and materials used to create boxes, the paper and ink used for labels and printing, equipment these companies use to package goods, and so much more. The list goes on and on. And that’s just cigars. Accessory manufacturers will be experiencing the same things, especially those coming from foreign manufacturers. Lighters, cutters, ash trays, cases, you name it. And if you didn’t take stock to see where most of those accessories are made, you’re definitely going to be shocked by what happens to their prices.
All of it means that the costs of enjoying our hobby will rise.
It’s unfortunate, but the reality is that we’re going to see cigar costs rise. That’s it, that’s the whole point. There’s no lesson here and no indirect commentary on anything else. I think most of us understand this is coming, whether we want it or not. Hopefully, it doesn’t increase so much that it prices a lot of us out. It seems a minor gripe with everything else that’s happening in the world, but when you’re passionate about something, anything that affects it negatively seems louder.
The good news is that the cigar community has a fairly well interwoven and supportive network. It’s certainly possible to find accessible, affordable smokes when everything else is just too expensive. So, at the very least, keep your eyes on what everyone else is smoking. Be on the lookout out for some great deals. Let’s band together and find some unique opportunities.
Briley has over 16 years in the publishing and content marketing business. He's been writing about cigars for nearly half that in various forms. What makes him a tour de force is he also smokes them.
Source: Briley Kenney / The BS Lounge
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