Trade War 2.0: How New Chinese Tariffs Could Impact Vaping Costs in Canada

The escalating trade tensions between the United States and China have once again sparked global concerns—this time with potentially unexpected consequences for Canada’s vaping industry.

While the latest tariffs announced by the U.S. don’t directly apply to Canadian imports, their ripple effects may still be felt north of the border. Let’s break down what’s happening and what it could mean for Canadian vapers.

🇺🇸 Understanding the New U.S. Tariffs on China

In November 2024, U.S. President-elect Donald Trump introduced a 10% increase on existing tariffs against Chinese goods. These new duties were framed as a response to concerns over drug trafficking and illegal immigration, and form part of a broader strategy to confront these issues through economic pressure.

Although these tariffs target Chinese goods entering the U.S., their indirect impact could spill into Canada—especially in sectors reliant on Chinese manufacturing, like vaping.

How the U.S.–China Trade War Could Indirectly Affect Vaping in Canada

Canada’s vaping market is deeply connected to international supply chains. Most vaping devices and components are manufactured in China. Here’s how U.S. trade policy might influence Canadian vape prices:

1. Supply Chain Shifts

Chinese manufacturers facing decreased demand from U.S. buyers may look to Canada and other countries to offset losses. This could:

  • Increase supply and temporarily lower prices in Canada,

  • Or create price instability as global demand shifts and producers reallocate shipments.

2. Currency Volatility

Trade wars often shake up currency markets:

  • If the Chinese yuan weakens, Canadian importers might enjoy better pricing.

  • But if the Canadian dollar weakens, it could offset any advantage and lead to higher retail prices.

3. Global Economic Slowdown

Ongoing trade tensions could trigger a broader slowdown in global growth. If consumer confidence and spending power in Canada decline, demand for non-essential goods—like vapes—might shrink, prompting manufacturers and retailers to adjust pricing strategies.

Domestic Factors Driving Vape Prices in Canada

While global dynamics matter, homegrown policies have an even bigger and more immediate impact on Canadian vape prices.

 1. Tax Increases

Starting July 1, 2024, Canada implemented major federal and provincial tax hikes:

  • The federal excise tax on vaping products rose by 12%.

  • Provinces like Ontario doubled their provincial vape taxes.

  • For example: a vape with 2.1–4mL of e-liquid now incurs $4.48 in tax, up from $2.00—a 124% increase.

 2. Regulatory Crackdowns

As of September 30, 2024, all vape products sold in Canada must carry province-specific excise tax stamps.

  • This regulation is enforced by the RCMP.

  • Non-compliant products could lead to criminal charges for retailers and distributors.

Final Thoughts: What's Really Driving the Price of Vaping in Canada?

While U.S. tariffs on Chinese goods may cause some indirect effects, the more pressing factors for Canadian vape consumers are:

  • Domestic tax hikes

  • New regulatory requirements

  • And overall economic uncertainty

Although U.S. tariffs on Chinese goods may not have an immediate impact on vape prices in Canada, the global nature of supply chains means indirect effects can’t be ruled out. That said, domestic factors—especially recent tax hikes and stricter regulations—are currently playing a much larger role in driving up vaping costs. To stay ahead of potential price changes, Canadian consumers should keep a close eye on both international trade shifts and evolving local policies.