Today, the Trump Administration reinstated a 25% global tariff on all steel and aluminum imports, expanding duties to include hundreds of downstream products derived from these metals. This policy marks a return to the broader tariff framework previously implemented during the first Trump Administration.

In response, the European Commission—the executive arm of the European Union (E.U.)—has outlined a two-stage countermeasure strategy. First, effective April 1st, the E.U. will lift the suspension of retaliatory tariffs imposed in 2018 and 2020, which were paused following a settlement with the Biden Administration. Second, the E.U. is actively developing a new set of countermeasures targeting U.S. exports, expected to take full effect by mid-April.

Significantly for the premium cigar industry, the reinstatement of these retaliatory measures means that U.S. premium cigar exports to all 27 E.U. member states will once again be subject to a 25% tariff. This includes products manufactured outside the U.S. that are imported and subsequently re-exported to the E.U.

Separately, the United Kingdom—no longer part of the E.U.—has opted not to impose retaliatory measures at this time. British Prime Minister Keir Starmer has signaled an interest in pursuing a negotiated resolution to mitigate tariff impacts in the long term. Given the U.K.’s proximity to the E.U. and its importance as an export market for U.S. premium cigar manufacturers, its approach to this issue will remain a key consideration.

Cigar Rights of America will continue to monitor these developments and provide updates as the situation evolves.