In recent years, the e-cigarette industry has flourished worldwide and has become an important part of new tobacco products. However, as the US government has imposed tariffs on Chinese imports, the e-cigarette industry has also been hit hard. The increase in logistics freight rates, coupled with the increase in demand during the peak season, may trigger a new round of price increases. Against this background, it is worth exploring in depth how the VEEHOO e-cigarette brand can cope with challenges and maintain its market competitiveness.
In February 2025, US President Trump signed an executive order to impose a 10% tariff on goods imported from China. Previously, the United States had imposed a 25% tariff on Chinese e-cigarette products. Together with the newly imposed 10% tariff, the total tariff rate for e-cigarette products has reached 35% (another agency predicted it to be 37.86%). This move mainly affects e-cigarette equipment, cartridges and related accessories imported from China. Due to the lack of large-scale e-cigarette production capacity in the United States, these products mainly rely on imports. Therefore, the increase in tariffs directly pushed up import costs, which in turn affected the prices for end consumers.
In addition to tariffs, the increase in logistics costs is also an important challenge facing the e-cigarette industry. In October 2023, several freight forwarding companies engaged in e-cigarette logistics in the United States and Europe stated that transportation costs in these two markets have generally risen. The price increase ranged from RMB 3 to RMB 10 per kilogram, with the highest increase approaching 30%. This increase is mainly due to the fact that European and American countries began to stock up in October to meet the needs of important festivals such as Christmas and New Year, resulting in relatively tight logistics resources and rising prices.
October to January of the following year is the peak sales season for the e-cigarette industry. Consumers’ demand for e-cigarette products during this period has increased significantly, prompting brands and retailers to increase their stocking efforts. However, the high demand during the peak season, combined with the background of rising tariffs and logistics costs, may lead to further increases in product prices. Brands face the dual challenges of cost pressure and market competition.
Faced with a complex market environment, the VEEHOO e-cigarette brand needs to adopt active and effective strategies to cope with current challenges and ensure the brand’s continued development and market competitiveness.
VEEHOO can consider transferring some production links to countries with lower tariffs, such as Southeast Asian countries such as Malaysia. These countries have free trade agreements with major markets such as the United States, the United Kingdom and the European Union, which may help reduce tariff costs. At the same time, establishing a diversified supply chain and reducing dependence on a single country or region can help diversify risks and improve the resilience of the supply chain.
Establish a close cooperative relationship with reliable logistics service providers to ensure priority delivery rights and preferential freight rates during the peak season. By negotiating with logistics companies, strive for more favorable transportation conditions and reduce logistics costs. At the same time, use data analysis to predict changes in demand, plan logistics arrangements in advance, and avoid high freight costs caused by temporary stocking.
On the premise of ensuring product quality and brand image, VEEHOO can flexibly adjust product prices according to market changes. For example, before the peak season arrives, use promotional activities to attract consumers to buy in advance, balance the sales rhythm, and alleviate the inventory pressure during the peak season. At the same time, pay attention to competitors’ pricing strategies to ensure that their own prices are competitive.
Through precise marketing, improve brand awareness and consumer loyalty. Use channels such as social media and online advertising to convey brand value and product advantages to attract target consumers. At the same time, pay attention to consumer feedback, continuously improve products and services, and enhance market competitiveness.
Pay close attention to changes in Sino-US trade policies and market dynamics, and adjust business strategies in a timely manner. Actively participate in industry associations and forums, communicate with industry insiders, obtain the latest information, and predict market trends. At the same time, establish a compliance management system to ensure that products comply with the regulatory requirements of various countries and reduce the risks caused by policy changes.
The increase in US tariffs and logistics costs has brought unprecedented challenges to the e-cigarette industry. In this complex market environment, the VEEHOO e-cigarette brand needs to actively respond, adopt diversified supply chain strategies, optimize logistics management, flexibly price, strengthen brand building, and pay attention to policies and market dynamics. Measures such as measures can stand out from the competition and achieve sustainable development. Only in this way can we move forward steadily in the ever-changing market and meet new opportunities and challenges.
Tags: fruit-flavored e-cigarettes, ceramic atomizer core, US tariffs, veehoo vape