Feature | Trump's Return to Power: What New Changes Could E-Cigarette Regulation Face?

Industry Insight by 2FIRSTS, edited by Sophia Lv
Jul.17.2024
Feature | Trump's Return to Power: What New Changes Could E-Cigarette Regulation Face?
Donald Trump officially nominated as the Republican presidential candidate at the National Convention, setting up a showdown with Joe Biden.

The Republican National Convention kicked off in Milwaukee, Wisconsin on July 15th. Former President Donald Trump was officially nominated as the Republican presidential candidate. Prior to this, Trump announced on his "Truth Social" platform his decision to choose Ohio Senator JD Vance as his vice presidential running mate.

 

Feature | Trump's Return to Power: What New Changes Could E-Cigarette Regulation Face?
Donald Trump (left) made his first appearance with his running mate JD Vance at the Milwaukee Republican National Convention | Image source: Joe Raedle/Getty Images

 

They are up against the current President Joe Biden and Vice President Kamala Devi Harris. On November 5th, Americans will vote to elect the next President of the United States from among them. According to a poll by ABC News/ Ipsos/The Washington Post, Biden and Trump have support rates of 46% and 47% among registered voters.

 

If Trump continues to maintain a slight lead, he may potentially become president again after leaving the White House for four years, becoming the second president after Stephen Grover Cleveland to be re-elected for a non-consecutive term. How will this impact the e-cigarette industry? What was Trump's attitude towards e-cigarettes during his presidency? 2FIRSTS has compiled the Trump administration's policies and the president's views on e-cigarettes during his term (January 20, 2017 - January 20, 2021).

 

Experience in Addressing the E-cigarette Crisis

 

In the early days of his presidency, Trump did not pay much attention to the issue of e-cigarettes. However, by 2018, brands like JUUL were rapidly rising and dominating the market with their flavored products and aggressive marketing strategies. As a result, there was a noticeable increase in youth vaping. According to the Centers for Disease Control and Prevention (CDC), by 2019, over a quarter of high school students were using e-cigarettes, with the surge in numbers attributed to the appeal of flavors like fruit, mint, and menthol.

 

In mid-2019, the CDC began investigating an outbreak of lung injuries associated with the use of e-cigarettes, known as EVALI (e-cigarette or e-cigarette product use-associated lung injury). The investigation found that many cases were linked to the use of e-cigarette products containing tetrahydrocannabinol (THC), especially those obtained through unofficial channels. Vitamin E acetate, a thickening agent added to some THC products, was considered to be one of the main causes of the lung injuries.

 

The CDC, FDA, and public health agencies in various states have collaborated to issue warnings about avoiding illegal e-cigarette products and certain ingredients.

 

Feature | Trump's Return to Power: What New Changes Could E-Cigarette Regulation Face?
Reported number of patients used|Image source: The New York Times

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Although most of the cases mentioned above are related to the addition of vitamin E acetate in illegal marijuana e-cigarettes, the issue of e-cigarette addiction among teenagers has become a health topic that the Trump administration needs to address. Controlling the widespread use of e-cigarettes among young people is now a top priority.

 

On September 9, 2019, the FDA issued a warning letter to the e-cigarette company JUUL, accusing the company of selling unauthorized, modified tobacco products through labeling, advertising, and/or other consumer-targeted activities (including demonstrations to teenagers in schools) that contribute to a monopolistic environment.

 

 

 

Feature | Trump's Return to Power: What New Changes Could E-Cigarette Regulation Face?
FDA releases flavored e-cigarette products that clear the market | Image source: FDA

 

FDA Acting Commissioner Ned Sharpless also issued a warning to the industry:

 

If the usage of e-cigarettes among teenagers continues to show disturbingly growth trends, especially through the use of enticing flavors for children, we will take more proactive actions.

 

On September 11, 2019, President Trump made a speech announcing a comprehensive plan to ban flavored e-cigarettes, citing the widespread use of e-cigarettes among youth. He also stated that there are concerns about a growing outbreak of lung diseases linked to e-cigarettes. According to The New York Times, over 50 people have died from e-cigarette use, and more than 2500 have become ill.

 

At the time, Trump said, "We will implement some very strict rules and regulations." In the Trump administration's cabinet, Health and Human Services Secretary Alex Michael Azar II supported banning flavored e-cigarettes to curb widespread use among teenagers.

 

On December 20 of that year, the president signed a bill amending the Federal Food, Drug, and Cosmetic Act, raising the federal minimum sales age for tobacco products from 18 to 21. This minimum sales age applies to all retail establishments and individuals. The bill took immediate effect, making it illegal for retailers to sell any tobacco products (including cigarettes, cigars, and e-cigarettes) to anyone under the age of 21.

 

However, the Trump administration does not want to destroy the entire industry by implementing a comprehensive flavor ban on e-cigarettes.

 

Brad Parscale, Trump's campaign manager, expressed concerns that a complete ban on flavored e-cigarettes would harm the president's voter base. This has led Trump to continue hesitating on officially implementing the ban.

 

According to The New York Times, a group representing thousands of e-cigarette stores nationwide has quickly mobilized. They have launched a "We Vape, We Vote" campaign on social media targeting President Trump, hired a political pollster who has worked on presidential elections, and even aired a television ad in Palm Beach, Florida (where Trump's Mar-a-Lago estate is located).

 

Feature | Trump's Return to Power: What New Changes Could E-Cigarette Regulation Face?
We vape, we vote.|Image source: Vapor Technology Association

 

Amid strong opposition from industry stakeholders, small business owners, and adult e-cigarette users using them as a smoking cessation tool, the Trump administration has reduced the proposed ban.

 

The FDA's enforcement policy against unauthorized e-cigarettes with fruit and mint flavors, including closed-system e-cigarettes, was announced in January 2020. The policy does not include mint and tobacco flavors. The FDA stated that research found mint flavor to be less popular among teenagers compared to other flavors, and flavored nicotine sold in open tank systems in e-cigarette stores is not subject to this ban.

 

This sets the basic policy for flavored e-cigarette products in the United States from 2020 onwards.

 

Trump: "I definitely should not vape."

 

Although "liberal media" such as The New York Times often criticize Trump, focusing on controversies surrounding his political tactics, legal issues, and personal behavior while questioning his leadership and integrity, objectively speaking, Trump himself neither drinks nor smokes. According to NBC, Trump declared himself a teetotaler before the 2016 election, claiming he has never consumed alcohol, smoked, or used drugs.

 

Feature | Trump's Return to Power: What New Changes Could E-Cigarette Regulation Face?
In a campaign event in New Hampshire, Trump said he does not smoke, drink alcohol, or use drugs | Image source: Associated Press

 

In the process of formalizing e-cigarette policies, the Trump administration did not simply issue a ban; they held meetings inviting various representatives to participate in discussions, including medical experts, industry representatives, policy makers, and lawmakers.

 

During a speech on the issue of youth e-cigarette use and the widespread availability of e-cigarettes before the policy was issued in November 2019, he demonstrated an understanding of the complexity of the e-cigarette issue and expressed willingness to develop policies based on comprehensive discussions and evidence. Throughout the discussion, Trump emphasized the importance of protecting young people.

 

While e-cigarettes may serve as a potential alternative for adult smokers, we cannot let them become a starting point for nicotine addiction and the use of traditional tobacco products among young people. We need to take care of our children. We must take care of our children.

 

At the same time, it was mentioned that e-cigarettes could serve as a helpful tool for adult smokers looking to quit smoking. "You know, e-cigarettes can help you quit smoking (cigarettes), which is better," said the source.

 

He also asked about the regulation of the e-cigarette industry, including product standards and safety. He expressed concerns about the potential emergence of illegal markets following the banning of e-cigarette flavors.

 

However, if it's not Renault or JUUL or a legitimate company that you know of producing safe products, they will be selling potentially harmful substances on street corners.

 

Although various viewpoints and possible solutions were discussed, Trump did not clearly state his final position at the end of the meeting, only indicating that the government's decision will be announced soon.

 

On January 17, 2020, following the release of the enforcement policy on e-cigarettes, The New York Times quoted three sources as saying that President Trump strongly criticized Azar II. Trump picked up the phone on his desk and said, "I absolutely should not be vaping e-cigarettes," and added an expletive.

 

Feature | Trump's Return to Power: What New Changes Could E-Cigarette Regulation Face?
United States Secretary of Health and Human Services Alex M. Azar II and Trump at the White House | Image source: The New York Times

 

Some media, such as The New York Times' commentators, believe that Trump's change in stance reflects his broader economic priorities, emphasizing the need to protect small businesses and employment in the e-cigarette industry. He advocates for a balanced approach that considers both public health and economic impact.

 

In response to the issue, White House spokesperson Judd Deere stated:

 

We are dedicated to implementing the president's policies to improve the American healthcare system, ensuring that everyone can benefit from it, not just individuals.

 

Donald Trump himself stated:

 

We will protect our families, we will protect our children, we will protect this industry," and indicate that some products may soon return to the market.

 

After the release of this law enforcement policy, associations and organizations that have been paying attention to the matter still have reservations about the policy. For example, organizations like the American Medical Association (AMA) are calling for stricter regulations, including a complete ban on the use of unapproved flavored e-cigarettes as smoking cessation tools by the Food and Drug Administration.

 

Enforcement Efforts may Continue to be Strengthened

 

If Trump wins this year's election and smoothly returns to the White House next year, his impact on the U.S. e-cigarette industry may continue to balance public health issues and economic interests.

 

2FIRSTS experts discussed this issue with SKY, a long-time observer of the U.S. e-cigarette market. SKY believes that the core contradiction of e-cigarette regulation in the future is no longer the FDA's opinion on flavors, but the law enforcement issues of the U.S. Department of Justice (DOJ), the U.S. Food and Drug Administration (FDA), and the U.S. Customs and Border Protection (CBP).

 

"After Trump takes office, the enforcement efforts of the Justice Department and Customs will be strengthened, so it is certain that he will enhance the intensity of law enforcement."

 

He believes that during Trump's previous term, he attached great importance to commerce circulation and combating smuggling. As a leader keen on "withdrawing from groups," this may lead to a more closed U.S. market. He stated that brands and OEM factories are adjustable variables, but the demand for the e-cigarette market will not disappear, so dealer channels will become more important.

 

"Whoever has the channel will win the game."

 

Trump may also use tariff issues to make a fuss, which is very similar to the trade disputes he initiated during his previous term.

 

Another variable is his new partner. Currently, Trump has announced JD Vance as the vice presidential candidate. Although Vance, who became a senator in 2022, has not yet discussed e-cigarette issues in public, based on his stance on other public health and policy issues, his attitude towards e-cigarette issues can be inferred.

 

Politico political media said that Vance has always emphasized the importance of public health. He once criticized Biden's administration for its weakness on drug issues, especially its tough crackdown on drugs and abused substances. He emphasized the serious impact of the fentanyl crisis on communities, which is also an important issue for major country cooperation.

 

Feature | Trump's Return to Power: What New Changes Could E-Cigarette Regulation Face?
Vans appears on NBC to discuss the fentanyl issue | Image source: NBC

 

In a blog show, he said:

 

"I really don't care what happens in Ukraine. What I really care about is that in my community, the main cause of death for people aged 18-45 is fentanyl flowing in from the southern border."

 

Therefore, Vance supports strengthening law enforcement to solve social problems, including illegal drugs and drug smuggling. He supports building a border wall as a key measure to stop the flow of these substances, and he also proposes spending $3 billion to complete Trump's wall.

 

Combining his overall policy views, SKY believes Vance may support strict regulation and enforcement because he is a politician who is highly conservative on issues such as drugs and marijuana. When e-cigarette issues become a focus of attention, Vance may also propose similar solutions.

 

It is worth noting that even if Trump can finally take office, e-cigarette regulation is no longer the same as in 2017 when he first took office. The entire market, regulation, and product forms are changing, and the most popular e-cigarette types have shifted from JUUL's reloadable products to disposable products.

 

During Biden's tenure, the FDA's regulation of e-cigarettes received criticism from all sides. The FDA Tobacco Center had to introduce reform plans to respond to investigations, while the original PMTA review period was still slow.

 

It was also this year that menthol e-cigarettes, which had been rejected multiple times, were approved by the FDA for the first time. The e-cigarette industry generally believes that this is a positive sign: the official recognition of menthol flavor will open up growth space for compliant companies.

 

Feature | Trump's Return to Power: What New Changes Could E-Cigarette Regulation Face?
FDA first approves four menthol-flavored e-cigarettes | Image source: 2FIRSTS

 

Therefore, this election will not only be a choice between two candidates, but also a major decision on future policy direction. The combination of Trump and Vance will undoubtedly bring promises of tough law enforcement and economic protection, especially on drug and e-cigarette issues.

 

No matter what the outcome, the U.S. e-cigarette market will experience more changes and challenges in the coming years. However, the possibility of Trump returning to the White House makes this election particularly eye-catching. History may once again witness the return of a former president, and the wings of a butterfly flapping at one moment can also set off a storm across the ocean in China, which will profoundly affect the future direction of the industry.

 

Cover photo: U.S. former President Donald Trump speaks at the "Chasing Votes" event held at Dream City Church in Phoenix, Arizona.

 

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