What Effect Will Trump's Trade War Have On Nicotine Pouch Prices?
Alyciah Beavers
Whether you supported him or not, on the 20th of January 2025 Donald Trump became the 47th president of the United States of America. He promised to usher in a golden age of America and it’s led to him taking several decisive actions.
Of course, what benefits one industry won’t always benefit another.
Trump’s initial targets have been China, Mexico, and Canada. He’s instigated tariffs as high as 25% on goods from these countries. As yet, he hasn’t targeted Europe where many nicotine pouch manufacturers are based.
That doesn’t mean it’s not an option or that the currently implemented tariffs won’t affect nicotine pouch prices.
Products Affected
The Trump trade war will increase the price of fruits and vegetables as many are imported from Mexico. As for Canada, the beef industry in both countries is likely to suffer, as is the lumber industry. Surprisingly most US cars are either built in Canada or Mexico or they use parts produced in those countries.
At present, this is unlikely to affect nicotine pouch prices.
However, Trump is looking at introducing tariffs on items imported into the US from Europe. If these tariffs are compatible then product prices could increase by as much as 25%.
Nicotine Pouch Prices
Nicotine pouch regulations across Europe are tightening, placing pressure on manufacturers. Should Trump’s trade war spread into Europe it’s likely that the increased pressure would push prices up in Europe and in the US.
The biggest issue for European suppliers is that manufacturers in the US will be able to produce and sell pouches without being subject to tariffs.
In order for European manufacturers to stay competitive, they’ll need to absorb some of the tariff cost themselves. The simplest way to do this is to increase the price in Europe, allowing them to sell the product cheaper in the US and retain a competitive edge.
"In both the US and Europe the cost of nicotine pouches will rise.”
A Silver Lining
At present, it is all theoretical. It’s possible that the relationship between nicotine pouches and Trump will be positive.
Trump’s administration has already reversed the rule banning menthol in cigarettes and the rule banning flavoured cigars. The FDA has also authorised the sale of Zyn pouches within the US.
Known Trump allies, such as Tucker Carlson, are also nicotine pouch users. This decreases the likelihood of pouches being targeted by President Trump.
It also seems likely that nicotine pouches will be regarded as a healthier alternative to smoking and an increasing number of Americans will switch to them.
This increase in customers can help European manufacturers stay competitive and even contemplate building factories inside the US.
Check Out Our Latest DealsSumming Up
While Trump’s trade war has the potential to cause price increases in nicotine pouches, it seems an unlikely outcome. However, it can’t be ruled out.
If it were to happen, companies such as Zyn will benefit as they already have a factory in the US which is dedicated to making and selling pouches in the US. To stay competitive, other manufacturers may have to follow their lead.
That’s a serious investment and is likely to cause price increases simply to allow the business to afford the expansion.
In short, watch this space. While it seems unlikely, the trade war could negatively affect the price of your nicotine pouch. Perhaps you should stock up now while you can.