This section is dated on purpose. Updated November 1, 2026, and I will refresh it as the rules move.
For about twenty years, premium cigars from Nicaragua, the Dominican Republic, and Honduras entered the US duty-free under the CAFTA-DR trade agreement. That ended on April 5, 2025, when the administration's IEEPA reciprocal tariffs took effect: 10 percent on Dominican and Honduran goods, and 18 percent on Nicaraguan goods. Nicaragua's higher rate briefly dropped to 10 percent during the 2025 pause, then went back to 18 percent in August 2025. Costa Rica, Ecuador, and Cameroon, which matter for cigars and wrapper leaf, went from 10 to 15 percent around the same time.
On February 20, 2026, the Supreme Court struck down the IEEPA tariffs. They were replaced from February 24 by a temporary 150-day surcharge under Section 122 of the Trade Act of 1974, a flat 10 percent on everyone, which cut Nicaragua's rate from 18 to 10.
That surcharge expired on July 24, 2026, and was replaced the same day by longer-term Section 301 tariffs, finalized by presidential memorandum on July 23. Under those, premium cigars from the Dominican Republic and Nicaragua pay 12.5 percent, as do Costa Rica and Cameroon, while Honduras, Mexico, and Ecuador pay 10 percent. No end date has been announced.
This matters for prices because the Dominican Republic and Nicaragua are the two biggest sources of handmade cigars sold in the US. In the Cigarista catalog, Nicaraguan lines are 45 percent of priced lines and Dominican lines another 28 percent, so roughly three out of four lines in the catalog now come from a country paying the 12.5 percent rate. Honduran lines, about 14 percent of the catalog, carry 10 percent.
How a tariff reaches you is worth understanding. The duty is charged on the import value of the cigar, which is far below the shelf price, so a 12.5 percent tariff does not mean a 12.5 percent price rise. But markups along the chain are applied to the new, higher cost, so trade press has pointed out that shelf increases can end up larger than the duty itself. Manufacturers have mostly passed costs along in modest steps. Oliva, for example, raised prices 5 percent in 2025 and another 4 percent on February 1, 2026, calling the second its tariff-driven increase tied to Nicaragua. Not every company raised prices, and some cited material and labor costs as well as tariffs.
What to watch next. Separately from all of the above, USTR announced its own Section 301 action against Nicaragua in December 2025, after floating tariffs as high as 100 percent. It sets an extra duty on Nicaraguan goods of 0 percent for 2026, rising to 10 percent on January 1, 2027 and 15 percent in 2028. As the trade reporting describes it, goods that qualify as CAFTA-DR originating and are properly claimed that way are excluded. Nicaraguan premium cigars have long entered under CAFTA-DR, so the direct effect on cigars looks small, but I have not seen an official statement specific to cigars, and USTR said the schedule can change. Treat January 2027 as a watch item, not a known price hike.
US import duty on premium cigars by period. Updated November 1, 2026. Sources: Premium Cigar Association, Cigar Rights of America.| Period | Legal basis | Nicaragua | Dominican Republic | Honduras |
|---|
| Before April 5, 2025 | CAFTA-DR trade agreement | Duty-free | Duty-free | Duty-free |
|---|
| April 5, 2025 to February 2026 | IEEPA reciprocal tariffs (struck down February 20, 2026) | 18% (10% during the 2025 pause) | 10% | 10% |
|---|
| February 24 to July 24, 2026 | Section 122 temporary surcharge | 10% | 10% | 10% |
|---|
| From July 24, 2026 | Section 301 tariffs | 12.5% | 12.5% | 10% |
|---|
| Watch: from January 1, 2027 | Separate Nicaragua Section 301 action | 10% on non-CAFTA-DR goods; qualifying goods reported excluded | Not covered | Not covered |
|---|
Are there tariffs on Nicaraguan cigars?
Yes. Since July 24, 2026, premium cigars from Nicaragua pay a 12.5 percent US import duty under Section 301, the same rate as Dominican cigars. Before that, Nicaraguan cigars paid 18 percent under the IEEPA tariffs from April 2025 until the Supreme Court struck them down in February 2026, then a temporary 10 percent. Before April 2025 they entered duty-free under CAFTA-DR.
Will cigar prices go up in 2027?
Possibly, but not automatically. The 12.5 percent duty on Nicaraguan and Dominican cigars has no announced end date, and makers have tended to pass costs on in yearly steps. A separate Nicaragua duty rises to 10 percent on January 1, 2027, but trade reporting says CAFTA-DR qualifying goods are excluded, which should cover most premium cigars. That is still unconfirmed for cigars specifically.