Reuters: Tariffs and Crackdowns Drive Sharp Decline in U.S. Supply of Chinese E-Cigarettes like Geek Bar

Key Points:

·The trade friction and policy crackdown between China and the United States have led to a steep drop in China's exports of e-cigarettes to the US: Due to the high tariffs imposed by the Trump administration on China (up to 145%) and the dual impact of the US FDA cracking down on unauthorized e-cigarettes, China's e-cigarette exports to the US nearly stalled in May 2025, far below the levels seen during the same period in 2024.

·Unauthorized brands face serious repercussions: Popular Chinese-made brands such as Geek Bar are being heavily impacted in the United States due to a lack of FDA authorization, resulting in large-scale seizures and purchasing restrictions. Wholesalers are reducing purchases, retailers are experiencing a steep decline in inventory, and the supply chain is visibly strained.

·High tariffs raise prices but demand remains strong: Despite the increase in e-cigarette prices due to tariffs and production costs, the industry believes that the impact on sales volume is limited. Consumers have a high dependency on the product and large profit margins allow some manufacturers to still bear the tax burden.

·Chinese manufacturers are transferring production to cope with policy pressure: Some unauthorized e-cigarette manufacturers have shifted production to countries like Indonesia to avoid high tariffs and US regulation. This trend is expected to accelerate, demonstrating the industry's strong adaptability.

According to a recent report by Reuters, data shows that due to the impact of US President Donald Trump's tariff policies and China cracking down on unauthorized e-cigarette sales in the world's largest market for smoking alternatives, China's e-cigarette shipments to the US in May nearly came to a standstill compared to the same period in 2024.

Affected brands include Geek Bar, among others. A retailer who declined to be named told Reuters that their store's e-cigarette supplier used to receive 100 boxes of Geek Bar e-cigarettes each week, but now only receives 10 boxes. Another supplier has implemented unprecedented purchase restrictions.

A customer notification seen by Reuters, without a specified date, states that due to "tariff-related price increases and limited market supply," the American supplier will limit purchases to five boxes per transaction.

According to five industry insiders and a notice from a wholesaler of Geek Bar in the United States, President Trump has decided to impose high tariffs on China (reaching a peak of 145% in April, currently at 30%) and has also seized a large number of unauthorized e-cigarettes. These measures have restricted the supply of Chinese e-cigarette brands, especially Geek Bar.

From May 1st to May 28th, the US Food and Drug Administration (FDA) only recorded 71 batches of e-cigarette products from China, compared to nearly 1200 batches during the same period in 2024. Data shows that the import volume of such products has decreased by 40% to 60% in February, March, and April after Trump took office, and continued to decline in May.

On April 22, a regional Geek Bar wholesaler in the United States sent an email to customers sharing with Reuters:

"Manufacturers have informed us that they will reduce supply in the short term due to increases in tariffs, rising production costs, and decreased capacity in the supply chain."

At the same time, e-cigarette retailers expect prices to rise in a certain direction. "After the imposition of additional tariffs, prices will definitely increase," said a US e-cigarette retailer who preferred to remain anonymous.

However, this may not have a significant impact on sales. British American Tobacco (BATS.L) spokesperson Luis Pinto stated that unauthorized e-cigarette manufacturers have substantial profits, allowing them to absorb some of the costs of tariffs.

At the same time, even as prices rise, consumers addicted to e-cigarettes tend to continue purchasing.

The individual stated that e-cigarettes like Geek Bar, currently sold for around $20, are still worth the price even if it increases by $5. The manufacturer of Geek Bar, Guangdong Qisi Technology, did not respond to comment requests sent to their general email address.

Pinto agrees that tariffs will raise prices, but may not reach the point of becoming a barrier to usage.

Many e-cigarettes landing on American shelves are produced in Shenzhen, which fulfills a majority of the global demand for e-cigarettes.

Some factories produce equipment for large tobacco companies such as Japan Tobacco International, which have legal permits to sell products in the United States. Other factors are driving the growth of the unregulated equipment market, which US authorities describe as illegal for importing or selling.

Pinto said that in order to reduce tariffs, illegal e-cigarette manufacturers may label their products with incorrect information, underestimate their value, or completely forge their country of origin to make them appear as if they are from countries with lower tariffs such as Indonesia, Vietnam, or Mexico.

According to statements from the FDA and Customs and Border Protection (CBP), e-cigarettes from China are often disguised as other items (such as shoes or toys) and smuggled into the United States in order to evade border officials' searches of unauthorized e-cigarettes.

Geek Bar is the most popular unauthorized e-cigarette brand in the United States in 2024. Despite not having approval from the FDA, its sales account for roughly a quarter of the sales tracked by market research company Circana in 2024. The FDA has been working to curb illegal imports from China.

This brand, along with thousands of other brands typically manufactured in China and not approved by the FDA, are stocked by wholesalers and retailers across the country, often sold alongside authorized brands from major tobacco companies like British American Tobacco and Altria.

A distributor, a former distributor, and an individual who previously worked at a major e-cigarette company in China have all stated that the U.S. tariffs have led to panic buying of e-cigarettes by American consumers, resulting in increased transportation costs and heightened border risks.

Sources claim that a significant number of e-cigarette seizures have also contributed to the supply issues faced by Geek Bar. In February, the FDA announced a large-scale seizure in Chicago, with the newly appointed FDA Commissioner Marty Makary pledging to crack down on unauthorized e-cigarettes.

The government's notice on the seizure of goods showed that e-cigarettes were further confiscated in March and April.

The growth of Geek Bar and other unregulated e-cigarette brands is eating away at the market share of tobacco companies such as Altria and British American Tobacco, according to estimates from these companies. They estimate that by 2024, unauthorized e-cigarettes will make up approximately 70% of total e-cigarette sales in the United States.

Altria CEO Billy Gifford told investors in April 2025 that he hopes tariffs will lead to "more stringent enforcement" of e-cigarette regulations at the border.

The trade war between Trump and China has caused a collapse in air and sea freight capacity between the two countries, restricting the transportation of goods including e-cigarettes.

The FDA's data only includes products that are properly reported as e-cigarettes. As a result, although industry sales have been increasing, the FDA has recorded a decline in e-cigarette shipments since 2020.

An FDA spokesperson stated that as the agency increases efforts to ensure compliance and prevent illegal imports, they anticipate an increase in the amount of goods intercepted.

This former employee stated that unauthorized e-cigarette manufacturers have also shifted production to Indonesia - the long-term tariffs on China may accelerate this shift.

This individual stated that e-cigarette manufacturers are "very adaptable". "No matter what happens in the United States, this industry will survive.