STG Announces Tariff Refund for Retailers

Scandinavian Tobacco Group (STG)—the parent of General Cigar Co. and Forged Cigar Co.—has informed retailers that it will be refunding the import charge that it applied to orders starting in May 2025.

This refund is the result of the Supreme Court’s ruling in February, which overturned the Trump administration’s International Economic Emergency Powers Act (IEEPA) tariffs. Following the tariff announcement in April 2025, STG adjusted its prices by applying a 5 percent import charge to all orders placed from May 19 onwards. At the time, STG said that it would adjust the import fee as the tariffs were adjusted. While the IEEPA tariffs have ended, the Trump administration has introduced two alternative tariffs, with current tariffs in effect due to what the administration is characterizing as issues related to forced labor and human trafficking.

STG has said that it will refund the import charges paid by retailers from May 19, 2025-Feb. 23, 2026.

“At the time we indicated that applying an import charge gives us the flexibility to revise the rate up or down as tariffs are adjusted, which we have subsequently had to do,” said Gene Richter, vp of sales, in a letter to retailers. “Importantly, we also indicated the import charge may be removed altogether if the tariffs are repealed. While the IEEPA tariffs were not repealed, they were declared unlawful, and we have been working through the government’s refund process relating to our imported goods which were subject to the IEEPA tariffs, a process which has taken months since the process was announced.”

STG said the tariff refunds will be issued in the form of a credit, which is expected to arrive around Oct. 23.

In August, the company said it had valued its tariff refunds at DKK 33 million ($5.12 million). It’s unclear how that figure was calculated.

Currently, STG is charging a 7 percent import charge on orders placed due to the existing tariffs, which are 12.5 percent of the direct import price of goods from the Dominican Republic and Nicaragua, and 10 percent for goods from Honduras. STG is the only company that operates handmade cigar factories in all three countries.

STG’s American portfolio—headlined by brands such as Alec Bradley, CAO, Macanudo and the non-Cuban Cohiba—has nearly 750 SKUs between the two divisions.

Last month, Altadis U.S.A.—an STG competitor—announced a similar tariff refund credit for retailers.