Vape Producer Juul Applauds Trump for Closing Tariff Loophole

American vape producer Juul Labs is applauding President Donald Trump for ending de minimis tariff exemptions in his executive orders imposing additional tariffs on China, Canada, and Mexico on Tuesday.

Juul issued a statement Monday commending Trump’s closure of the “‘de minimus’ tariff loophole,” which the company says enabled “illegal Chinese vapor products” to dominate the American vaping market:

Juul Labs, Inc., an American technology and innovation company, commends President Trump’s efforts to protect American citizens through increased enforcement of trade laws and border security. This includes closing the so-called “de minimus” tariff loophole, which allows Chinese exporters to smuggle products into the U.S. with scant oversight or inspection.

Smugglers have taken advantage of the de minimis rule–a tariff exemption of shipments valued lower than $800–to the point where “illegal” products from China account for the vast majority of the American vaping market, according to Juul Labs:

Over the past four years, criminals have used smugglers’ tactics to exploit this loophole and flood the U.S. with illegal Chinese vapor products, which now account for approximately 70% of the market. This key provision of the America First Trade Agenda empowers our law enforcement agencies to stop the flow of illegal Chinese vapor products and further secure our border.

A senior White House official noted Saturday that de minimis packages are often not inspected when imported, and the loophole has allowed counterfeit goods and fentanyl into the United States.

Trump lifted the exemptions for China, Canada, and Mexico in his executive actions on Saturday, which also impose 25 percent tariffs on goods imported to the U.S. from Canada and Mexico and a 10 percent tariff on Chinese goods. Canadian energy products will notably face a smaller 10 percent tariff.

The tariffs, which take effect Tuesday, are in addition to any existing tariffs.