LONDON, March 31 (Reuters) - Big tobacco companies like
British American Tobacco ( BTI ) 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 ( MO ),
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 ( MO ) 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 ( MO ) 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)