The executive orders President Donald Trump has signed since taking office authorizing tariffs against Mexico, Canada, and China cite fentanyl production and smuggling concerns as their rationale. The extension granted to Mexico and Canada caused many observers to hand-wave these tariffs as an empty negotiating tactic, but the implementation of the Chinese tariffs and revocation of expedited customs handling for Chinese small parcels shows that President Trump has a clear picture of the recent realities of U.S.-bound smuggling.

Chinese companies are increasingly engaging in fraudulent shipping behavior to sneak dangerous and illicit goods, such as vaping devices banned in China and restricted fentanyl precursor chemicals, past customs inspections and directly into the United States.

China’s state-owned tobacco monopoly (CNTC) generates $200 billion annually. The overwhelming majority of that figure comes from domestic cigarette sales. CNTC, which also serves as China’s tobacco regulatory agency under its parallel identity as the State Tobacco Monopoly Administration, has been aggressive in protecting its domestic market against e-cigarettes.

After being granted regulatory authority over e-cigarettes in a 2021 decision, CNTC cracked down on China’s burgeoning e-cigarette market and banned domestic sales of many products. The explosive growth in the U.S. of disposable vapes, particularly the Lost Mary and Elf Bar brands produced by Shenzhen iMiracle, occurred as Chinese manufacturers scrambled to find a new market for their products — paying no regard to the laws of foreign countries. Our own laws, banning the sale of candy and fruit vape flavors designed to entice children, are among those routinely violated.

Most of the Chinese-origin vapes entering the United States are prohibited under federal law, yet still represent 30% of the U.S. e-cigarette market. Not only that, but a Shenzhen iMiracle spokesperson allegedly admitted that all Lost Mary and Elf Bar products now in the U.S. are counterfeit and subject to no standardized health and safety controls. 

Illegal e-cigarette smuggling is extensive. ImportGenius worked with the Associated Press on research for an article which noted that Elf Bar, the small vaping device favored among teenagers, has “repeatedly” dodged customs and avoided taxes and import fees.

Many of the shipments of these products are mislabeled as “battery chargers” and “flashlights.” Earlier this year, the FDA joined forces with the Department of Justice, pledging a crackdown on these illicit imports.

Law enforcement is hard at work on this issue, and this past December the Chicago Customs and Border Protection (CBP) office announced the seizure of over $80 million in illegally imported vaping devices. Another $18 million worth was seized by customs officers at the Los Angeles Airport. Combating this will require providing more resources to the CBP, closing loopholes which give air freight shipments lower customs scrutiny, and mandating that air freight customs records are held to the same standard of public disclosure as maritime shipments so that journalists and companies in the private sector can pitch in.

The FDA has worked to approve the sale of some American products, but a federal agency known as the International Trade Commission (ITC) is actively making it more difficult to protect the American people.

The ITC just moved to block the sale of the FDA-approved vaping devices, giving the illegal smugglers a near monopoly of the flavored e-cigarette market. Make no mistake: this represents a multi-billion dollar giveaway to illegal Chinese manufacturers and smugglers who refuse to play by the rules. iMiracle brands alone were estimated to generate $3.5–$4 billion globally by ECigIntelligence, an industry analyst.

Some members of Congress understand the threat. Rep. Raja Krishnamoorthi, the ranking Democrat member of the House Select Committee on the Chinese Communist Party, has highlighted the recent phenomenon of Chinese-made e-cigarettes flooding the US marketplace.

“The vast majority of the new vapes that have entered the market are being illegally imported from China, and these vapes, we have no idea what they contain because they’re being manufactured in facilities that are not in any way being inspected by the FDA,” Krishnamoorthi said.

President Trump gets what’s at stake too. He understands the threat posed by illegal Chinese vapes, and has cautioned against bans of FDA-approved American vape devices, stating, “If you don’t give it to them, it’s going to come here illegally… They could be selling something on a street corner that could be horrible.” Now, hopefully the president will stand strong and veto the ITC’s decision within the 60-day window that he has to do so.

It’s time for the White House and Congress to recognize the gravity of this crisis and act decisively. Strengthening border enforcement, enabling public oversight of China-originating shipments, and ensuring access to American-made FDA approved vaping devices are not just matters of trade policy—they’re vital steps to safeguarding our nation’s health and security. Anything less is a surrender to those who profit at our expense.

William George is the director of research for ImportGenius, a US-based trade data aggregator that provides businesses with detailed insights into global trade activities.

Image: Free image, Pixabay license.