The Cigar Industry Under Attack: California UTL and USTR 301

The premium cigar industry is facing two distinct and severe threats that, together, represent the most significant challenge to the premium cigar business in a generation.

On one front, a regulatory misapplication of California’s Unflavored Tobacco List (UTL) threatens to bury manufacturers in red tape. On the other, a determination from the U.S. Trade Representative (USTR) could impose a 100 % tariff on cigars and could strip Nicaragua of their status under the Dominican Republic-Central American Free Trade Agreement (CAFTA-DR). These existential threats could effectively dismantle the premium cigar industry as we know it. 

Cigar Rights of America (CRA) is leading the fight on both fronts, but we need your support to succeed.

The California UTL

California’s Unflavored Tobacco List was intended to target artificially flavored products designed to appeal to youth. Unfortunately, in a classic case of regulatory overreach, premium cigars have been caught in the same net and must now submit onerous documentation on, and pay exorbitant fees for, each variation of each cigar they manufacture. This regulation fundamentally misunderstands premium cigars, which are never artificially flavored. The complex notes experienced by premium cigar enthusiasts are the natural result of high-quality tobacco, expert blending, and careful fermentation—not chemical additives.

California often serves as a bellwether for tobacco policy and ground zero for misguided regulation. That is why we must fight back against the UTL. We have filed legal challenges at both the state and federal levels to protect our industry from this poorly drafted regulation and ensure that premium cigars are not treated the same as a mango-flavored vape pen.

USTR’s Nicaragua Investigation

While we fight a regulatory battle in California, a devastating economic threat is looming at the federal level. The U.S. Trade Representative (USTR) recently issued a Section 301 determination that could impose tariffs of up to 100% on all goods imported from Nicaragua, including premium cigars. Nicaragua is the single largest producer of premium cigars for the U.S. market. A 100% tariff would upend supply chains and place an unbearable burden on manufacturers, retailers, and consumers alike. 

This action is intended to punish the Nicaraguan government, but it will instead decimate one of the few industries that serves as a model employer for the entire region and contribute to regional destabilization, as newly unemployed individuals will have to seek jobs in higher-risk and potentially illicit businesses or migrate to other countries.

The premium cigar sector has always worked assiduously to hold itself not just to the highest labor standards, but to exceed them. Our partners in Nicaragua are renowned for providing critical social infrastructure, including health clinics, daycare facilities, and educational opportunities for their employees and their families.

This Is the Fight for Our Survival

These two issues—one a bureaucratic nightmare, the other a serious economic situation—threaten our industry from farm to humidor.

Alone, a single retailer or manufacturer cannot fight a state bureaucracy and a federal trade action simultaneously. But together, we can.

CRA remains your advocate, your lobbyist, and your legal defense. Our work in the courtroom against the California UTL and our advocacy in Washington against the 301 tariffs are funded directly by your support.

We are fighting to protect our shared passion and our collective livelihood. Please stand with us, support our mission, and help us win these critical battles.