With the Trump Administration’s “One Big Beautiful Bill Act” now signed into law, the Premium Cigar Association (PCA) reached out to its members who have spent years frustratingly in a sort of limbo where cigars are sometimes but sometimes not treated like cigarettes or other tobacco products. The PCA said the Act introduces important policy shifts that provide both immediate benefits and notable challenges to premium cigar retailers.
“On the positive side, PCA members will see immediate advantages from a temporary regulatory freeze on new FDA and HHS rules,” the statement said. “This provides retailers with temporary relief from new compliance burdens, enhancing short-term operational stability. Additionally, the Act significantly increases the small business tax deduction on qualified business income from 20% to 23%. This improvement directly benefits small and family-owned cigar retailers by lowering their overall tax liability, allowing more resources to be invested back into their businesses.
“While the Act provides meaningful short-term benefits, it also necessitates proactive management of new challenges. Strategic advocacy, ongoing economic analysis, and member education will be key in leveraging the opportunities and mitigating potential risks posed by these legislative changes.”