Headlines
Big Tobacco targets Trump in hope - and fear - of change
Published by Global Banking & Finance Review®
Posted on March 31, 2025
5 min readLast updated: January 24, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on March 31, 2025
5 min readLast updated: January 24, 2026
Big tobacco firms lobby Trump to curb illegal vapes, focusing on Chinese imports, aiming to protect their market share amid regulatory challenges.
By Emma Rumney
LONDON (Reuters) -Big tobacco companies like British American Tobacco are lobbying U.S. President Donald Trump's administration to crack down on illegal vapes, including via import bans on Chinese devices, documents show and industry consultants said.
Tobacco groups, including BAT and Altria, have complained that while waiting years for their own vapes or other products to get permission for sale in the U.S., some vape makers have taken substantial market share even though authorities say they are illegal to sell.
Despite efforts to stem the flow of unauthorised vapes, they currently dominate the market. BAT estimated last year that unauthorised disposable vapes account for around 70% of almost 10 billion pounds ($12.93 billion) worth of U.S. vape sales annually. Tobacco companies say this has hit their own vape and cigarette sales.
U.S. authorities have said these unauthorised vapes, including products made by Chinese firms, are illegal to import into the U.S. or sell there.
BAT and Altria have expressed optimism that Trump's government will address these issues.
BAT's U.S. subsidiary Reynolds American wrote to the Office of the United States Trade Representative on March 11 to call for the government to ban imports of all disposable vapes from China and consider additional tariffs on any other Chinese-made e-cigarettes and smoking alternatives.
"The Chinese companies' unfair and illegal trading practices harm Reynolds and other law-abiding U.S. companies," Reynolds wrote in the letter, published by the USTR. The letter has not previously been reported.
Asked about the letter, a Reynolds spokesperson said only products that follow FDA policies and procedures should remain on the market.
The stakes are high for tobacco companies. Changes that deliver more robust enforcement of the rules governing vapes and other smoking alternatives could help them protect their market share in U.S. nicotine consumption even as tobacco use falls.
But any shift that removed or lowered legal and regulatory obstacles for currently unauthorised vapes could accelerate their growth further.
Big tobacco and vape companies want the FDA's authorisation process to be faster and clearer, but not necessarily more wholesale change, two industry consultants told Reuters.
White House press secretary Karoline Leavitt said President Trump makes decisions in the best interests of the American public.
'NO SECRET'
Tobacco companies, as well as vape makers, are battling to get the ear of relevant U.S. leaders or officials to make the case for changes they would support, a total of three industry consultants said. They asked not to be identified in order to speak freely.
"It's no secret that everyone with a stake in this issue is trying to access the White House," said one of the consultants, who works for a tobacco company.
Reynolds donated $10 million to Trump-aligned super PAC Make America Great Again Inc, Federal Electoral Commission filings show.
BAT said it engages with lawmakers across the political spectrum and advocates for policies that help transition smokers to alternatives regardless of who is in the White House.
Brian Ballard, president of Ballard Partners, a lobbying firm employed by Reynolds since 2017, according to official lobbyist filings, chaired the Florida Finance Committee for Trump during his 2016 campaign.
His firm also previously employed Susie Wiles, Trump's current White House Chief of staff, and U.S. Attorney General Pam Bondi, lobbyist filings show.
The Department of Justice did not respond to questions on Bondi's link to Ballard Partners. Ballard Partners declined to comment.
Wiles has not had any contact with Ballard Partners or BAT since January, a senior White House official told Reuters.
SAVE VAPING?
The FDA has been criticised by companies and some lawmakers for slow product authorisations and for failing to address the widespread trade in unauthorised products. The agency has said it needs more resources to tackle these challenges.
Tobacco industry executives are concerned that the FDA's Center for Tobacco Products could be gutted or axed if the administration concludes it has failed, the consultant working for a tobacco company said.
CTP has already been targeted for cuts and could be affected by plans to restructure federal public health agencies announced last week.
The FDA has so far authorised only 34 tobacco and menthol-flavoured vape products for sale.
Reynolds said there was an "urgent need" to revisit how new products come to market, but it embraces FDA action to review and authorise them.
Altria pointed Reuters to remarks by CEO William Gifford, who told investors in February Altria wants quicker product authorisations and proper enforcement against illicit products.
The head of the Vapor Technology Association, Tony Abboud, however said the current system creates a steep barrier for entry and had essentially outlawed flavoured vapes that can help smokers quit.
A significant change of approach was needed, Abboud told Reuters.
The association says it represents "industry-leading manufacturers of vapor devices, e-liquids, and flavorings, distributors and suppliers, as well as retailers."
Abboud met with Trump in 2024. Afterwards, in September 2024, Trump posted on Truth Social pledging to "save" vaping.
($1 = 0.7733 pounds)
(Reporting by Emma Rumney. Editing by Jane Merriman)
The article discusses big tobacco companies lobbying the Trump administration to crack down on illegal vapes, particularly from China.
They aim to protect their market share by enforcing stricter regulations on unauthorized vapes.
Tobacco firms are requesting import bans on Chinese vapes and faster FDA product authorizations.
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