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Big Tobacco targets Trump in hope - and fear - of change
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Big Tobacco targets Trump in hope - and fear - of change
Mar 31, 2025 6:53 AM

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)

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