
According to a report by Tobacco Reporter on November 7, The Wall Street Journal stated that tobacco stock prices increased after United States President Donald Trump's election victory.
Today (7th), British American Tobacco (BAT) stock rose by 4%. Its subsidiary, Reynolds Tobacco (Reynolds American), was a major donor to the "Make America Great Again" Committee, which supported former President Trump's reelection campaign.
Reynolds Tobacco has been resisting the proposed mint flavor ban from the Biden administration, which was delayed earlier this year. It is estimated that under the leadership of the Trump administration, the mint flavor ban could be completely overturned.
British American Tobacco (BAT), Altria, and Imperial Brands (IMB) all have significant operations in the American mint cigarette market, with these products accounting for over a third of the total volume of the US cigarette market.
Additionally, the re-elected Trump administration may continue to crack down on the illegal importation of disposable e-cigarettes from China. During his first term as president, Trump actively implemented barriers on imported goods from China, a move that could potentially benefit some tobacco companies' e-cigarette brands.
However, the expected strengthening of the US dollar during Trump's presidency could be troublesome for Philip Morris International (PMI) as around 90% of the multinational company's sales come from currencies of other mainly emerging markets. Inflation may also rise, impacting tobacco stocks as they primarily target price-sensitive low-income consumers.
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