Intensified Advocacy Amidst Critical Trade Decisions

The premium cigar industry is entering one of its most consequential periods, facing major challenges in international trade and domestic regulation. CRA is fully engaged in Washington, California, and state capitals nationwide, executing coordinated strategies to protect manufacturers, retailers, and consumers as key decisions near.

The most pressing threat remains the U.S. Trade Representative’s Section 301 investigation of Nicaragua, which could impose tariffs of up to 100% or suspend CAFTA-DR benefits. We have completed the two central components of our defense: direct engagement with USTR officials to advocate for excluding premium cigars from punitive actions, and timely submission of our full docket comment ahead of the November 19th deadline. We now await the Administration’s December 10 determination while continuing to press Congressional leaders to reinforce the need for a premium cigar exemption.

On the federal front, we continue to build long-term stability by securing new co-sponsors for H.R. 2111, establishing a statutory premium cigar definition and exemption from future FDA regulation. With the government shutdown resolved, we are expanding outreach on Capitol Hill. We are also leveraging FDA’s shift toward a “continuum of risk” framework to advance a formal policy recognizing the unique, low-risk profile of premium cigars. In parallel, we are advocating for relief from costly manufacturing requirements, unreasonable nicotine standards, and clarifying the post-vacatur process for withholding user fees.

Our litigation and state advocacy remain active. We continue to challenge California’s Unflavored Tobacco List (UTL) in state and federal court, noting that several of our priorities were incorporated into the Attorney General’s proposed regulations. We are reviewing whether additional comments are warranted while litigation proceeds. Beyond California, we are monitoring the spread of Nicotine-Free Generation proposals in Massachusetts and supporting Wisconsin’s AB 211 to exempt tobacco bars from the indoor smoking ban.

The coming weeks will be decisive. Our direct engagement with USTR, ongoing legislative work, and active litigation reflect CRA’s unwavering commitment to defending this industry.

We urge continued vigilance and will keep stakeholders updated as the December 10 Nicaragua determination approaches.

Thank you for your steadfast support.

Sincerely,

Michael Copperman

Executive Director