STG Announces Tariff Refund for Retailers

STG Is Refunding Millions in Tariff Charges to Retailers

Scandinavian Tobacco Group, the parent of General Cigar Co. and Forged Cigar Co., is giving money back to cigar shops. The STG tariff refund covers import charges the company collected while certain tariffs were in effect, and it adds up to roughly $5.12 million. It's a rare piece of good news in a year where trade policy has pushed costs up across the whole business. Here's what's actually being returned, what is not, and why this matters even if you never buy a box at wholesale.

How a Tariff Reaches Your Cigar

Start with the basics, because this is where most of the confusion lives. Almost every premium cigar sold in the U.S. is made somewhere else. The Dominican Republic, Nicaragua, and Honduras do the heavy lifting. When those cigars enter the country, the importer pays a tariff.

That cost does not stay put. The importer adds an import fee to what it charges shops. The shop pays more for the same box it bought last year. And eventually, that pressure reaches the shelf. So a policy decision made in Washington ends up in the price of a cigar in your hand, three countries and two businesses later. That chain is the real story behind the STG tariff refund.

Why STG Is Giving the Money Back

The tariff refund traces back to a court decision. The U.S. Supreme Court ruled that the IEEPA tariffs the administration had imposed were unlawful. Once that happened, the charges collected under them were no longer justified.

STG had been adding an import fee to retailer orders during that window. With the tariffs struck down, the company began working through the refund process with the government, and it is now passing that money back down the chain. The charges being returned cover orders billed from May 19, 2025 through February 23, 2026.

What's coming back, and what isn't

Important: the Tariffs Are Not Gone

This is the part worth reading twice. A tariff refund is not the end of tariffs on cigars. STG is still applying an import charge of roughly 7% on current orders, tied to tariffs that remain in place: about 12.5% on goods coming directly from the Dominican Republic and Nicaragua, and 10% from Honduras.

So what's being refunded is a specific window of charges that a court decision invalidated. What's happening today is separate, and it continues. Anyone reading this as "tariffs are over" is reading it wrong.

What a Credit Means for a Cigar Shop

Here's a practical detail that gets overlooked. The tariff refund comes as a credit on the retailer's account, not a check. That distinction matters. A credit can only be spent with that supplier, so it effectively becomes buying power for future inventory rather than money a shop can put anywhere it likes.

For independent brick-and-mortar shops and online retailers that move serious volume, the amount can be meaningful. A store that bought heavily from General Cigar during that window gets a real cushion. A smaller shop gets a smaller one. Either way, the most likely use is restocking shelves rather than cutting prices.

Will Cigar Prices Drop?

Let's be honest rather than optimistic: probably not, at least not directly. The tariff refund covers past charges that shops already absorbed, often over a year ago. It is money coming back for costs already paid, not a reduction in what cigars cost today. And since current import charges are still being applied, the underlying pressure hasn't changed.

The more interesting question is what retailers do with the breathing room. Some may deepen their inventory and bring in lines they'd been holding off on. Some may run promotions. Some will simply use it to stay stable in a hard year. Those all help customers in real ways, just not the kind that shows up as a lower sticker price.

Smoke the Brands in the Middle of This

If you want to put faces to the names, STG owns General Cigar Co., the house behind Macanudo, CAO, and La Gloria Cubana. Altadis USA, which announced its own retailer refund, is the home of Montecristo. Here are a few we have on the shelf right now.

Shop these houses at Mardo

MacanudoMacanudo Emissary L.E France ChurchillViewCAOCAO Arcana Thunder Smoke L.EViewMacanudoMacanudo Inspirado Red GiganteViewLa Gloria CubanaLa Gloria Cubana Serie R No. 6 MaduroView

The Bigger Question

STG isn't alone. Altadis USA, the company behind Montecristo, has announced its own retailer tariff refund. Two of the largest players in premium cigars moving the same direction in the same month is a pattern, not a coincidence.

So the question worth watching is simple: who follows? Plenty of other importers collected similar fees during the same window, and none of them has announced a tariff refund yet. If more of them return that money, the industry gets a meaningful reset after a brutal stretch. If they don't, these two will stand out. Either way, the past year has been a reminder of how closely the cigar world is tied to trade policy, and how fast that can change. Browse our full cigar collection or read more in our guide to Dominican cigar brands, one of the regions right at the center of this.

Mardo Cigars sells premium tobacco products intended for adults 21 and older. Please enjoy responsibly.