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

Jun.09
Reuters: Tariffs and Crackdowns Drive Sharp Decline in U.S. Supply of Chinese E-Cigarettes like Geek Bar
Reuters reports that U.S. imports of Chinese e-cigarettes have fallen sharply due to high tariffs and stricter FDA crackdowns. Brands like Geek Bar face major supply shortages and rising prices, though demand remains strong. Some Chinese makers are moving production to Southeast Asia to avoid regulatory pressure.

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.

 

We welcome news tips, article submissions, interview requests, or comments on this piece.

Please contact us at info@2firsts.com, or reach out to Alan Zhao, CEO of 2Firsts, on LinkedIn


Notice

1.  This article is intended solely for professional research purposes related to industry, technology, and policy. Any references to brands or products are made purely for objective description and do not constitute any form of endorsement, recommendation, or promotion by 2Firsts.

2.  The use of nicotine-containing products — including, but not limited to, cigarettes, e-cigarettes, nicotine pouchand heated tobacco products — carries significant health risks. Users are responsible for complying with all applicable laws and regulations in their respective jurisdictions.

3.  This article is not intended to serve as the basis for any investment decisions or financial advice. 2Firsts assumes no direct or indirect liability for any inaccuracies or errors in the content.

4.  Access to this article is strictly prohibited for individuals below the legal age in their jurisdiction.

 

Copyright

 

This article is either an original work created by 2Firsts or a reproduction from third-party sources with proper attribution. All copyrights and usage rights belong to 2Firsts or the original content provider. Unauthorized reproduction, distribution, or any other form of unauthorized use by any individual or organization is strictly prohibited. Violators will be held legally accountable.

For copyright-related inquiries, please contact: info@2firsts.com

 

AI Assistance Disclaimer

 

This article may have been enhanced using AI tools to improve translation and editorial efficiency. However, due to technical limitations, inaccuracies may occur. Readers are encouraged to refer to the cited sources for the most accurate information.

We welcome any corrections or feedback. Please contact us at: info@2firsts.com

Philippines DTI Reports $740K in Illegal E-Cigarette Seizures and Removal of 100 Million Violation Records This Year
Philippines DTI Reports $740K in Illegal E-Cigarette Seizures and Removal of 100 Million Violation Records This Year
Between January and May 2025, the Philippine DTI seized $740,000 worth of illegal e-cigarettes from 88 unauthorized brands. Over 104 million online violations were removed, 628 businesses flagged, 385 legal notices issued, and 10 brands suspended.
May.28
BAT: Accelerating Smokeless Transition, with MENA as a Global Strategic Focus
BAT: Accelerating Smokeless Transition, with MENA as a Global Strategic Focus
British American Tobacco accelerates transformation towards smoke-free future in MENA region, playing crucial role in harm reduction.
Jun.11 by 2FIRSTS.ai
2Firsts Exclusive Interview| Disposable Shisha Brand Al Fakher: Building on Product Strength, Rejecting Price Wars, and Embracing Healthy Competition
2Firsts Exclusive Interview| Disposable Shisha Brand Al Fakher: Building on Product Strength, Rejecting Price Wars, and Embracing Healthy Competition
At the 2025 World Vape Show, Al Fakher told 2Firsts about its global growth from the Middle East, showcased unique new products, and stressed its focus on premium positioning over price wars.
Jun.19 by 2FIRSTS.ai
Vietnam Steps Up Tobacco Control Under National Anti-Smoking Strategy
Vietnam Steps Up Tobacco Control Under National Anti-Smoking Strategy
Vietnam’s Ministry of Industry and Trade is tightening tobacco regulations, strengthening market oversight, promoting digital transformation, and coordinating with other agencies to crack down on illegal cigarette trade and improve enforcement.
May.26 by 2FIRSTS.ai
Singapore Deports Foreigners, Arrests Thousands in E-Cigarette Crackdown
Singapore Deports Foreigners, Arrests Thousands in E-Cigarette Crackdown
Singapore has arrested over 17,900 people for e-cigarette offences between January 2024 and March 2025, seizing products worth more than $41 million. Authorities have charged several individuals over online sales. The government stressed all e-cigarette activities are illegal, with foreign offenders to be deported.
May.19 by 2FIRSTS.ai
2Firsts, ITGA Partner to Support Tobacco Growers
2Firsts, ITGA Partner to Support Tobacco Growers
2Firsts and the International Tobacco Growers’ Association (ITGA) have formed a strategic partnership covering media collaboration, event co-organization, Greater China representation, and joint publications to support the transformation and sustainable development of the tobacco-growing sector.
Jun.04