USWhere the tariffs stand
- 12.5% Section 301 tariff on goods from the Dominican Republic and Nicaragua
- In effect since late July / August 1, 2026
- Replaced the temporary 10% surcharge that ran February–July 2026
Most premium cigars sold in the U.S. are made in the Dominican Republic or Nicaragua, so these two countries matter most for cigar pricing. Duties on both have changed three times since April 2025:
- April 2025 – February 2026: emergency (IEEPA) tariffs of 10% on the Dominican Republic and 18% on Nicaragua. The Supreme Court struck these down.
- February 24 – July 24, 2026: a temporary 10% surcharge under Section 122.
- Late July 2026 – now: a 12.5% tariff on both countries under Section 301, which is meant to be long-term.
$What it means for pricing
Manufacturers pay the duty when cigars enter the U.S. and pass most of it down the chain. Expect list prices on Dominican and Nicaraguan lines to reflect the 12.5% duty as makers work through inventory they imported before the change. Cigars from Honduras and other origins are taxed under different rules, so price changes will vary by brand.
For shops, the practical steps are simple: watch for manufacturer price-increase notices, reprice shelf stock as new cases arrive rather than all at once, and consider buying ahead on your steady sellers before announced increases take effect.
We pass along manufacturer price changes as they reach us, not before. If you want a heads-up on increases for the brands you carry, or want to stock up on a line before a new price takes effect, talk to your Big Distro sales contact.
Sources: Premium Cigar Association · USTR (Nicaragua Section 301) · Cigar Rights of America