Tobacco stocks stay lit as Wall Street tumbles
The companies are weathering the storm because their manufacturing is predominantly domestic.
Companies that sell cigarettes and other nicotine products some Wall Street traders may be abusing today are up amid a broader market meltdown over President Trump’s tariff announcement.
British American Tobacco (which makes Newports, Camels, and Vuse vapes), Philip Morris International (which makes Iquos vapes and Zyns), and Altria (which makes Malboros and Njoy vapes) all rose more than 2% on Thursday morning. At the same time, the S&P 500 is sinking more than 4%.
Tobacco products are predominately manufactured domestically and are therefore insulated from tariffs. Even Zyn, a product that originates from Sweden, is manufactured in Kentucky.
On top of tariffs, Trump also signed an executive order ending the de minimis treatment that enabled cheap imported goods from China and Hong Kong to enter the US without facing duties. That closes a loophole that allowed Chinese vapes (think Elf bar and Geek bar) to enter the country. Tobacco companies have fought to end the sale of those vapes, which are more popular than domestic versions but don’t have to follow FDA rules.
