Once again we are confronted with an example of the type of political risk that is indicative of the government's efforts at social engineering to discourage the public's use of a product they consider harmful without legislation that would make the product illegal to manufacture, sell, distribute, own, or use.
In some cases, the government increases the taxes imposed on the product to make it less attractive to youngsters and others with less discretionary income. Burdening heavy users with additional costs the government hopes will reduce or eliminate usage. The two most prominent examples are alcohol and tobacco.
Today's example comes from legislation that curbs the carriage and delivery of tobacco-associated vaping products.
"The U.S. Postal Service’s ban on the shipping of all vaping products, which was mandated by Congress late last year, took effect. The Postal Service’s exit, combined with existing delivery bans by FedEx, UPS, and DHL leaves the vaping industry with limited options to get its goods to market.
The prohibitions imposed by the four carriers affect online sales to consumers as well as business-to-business transactions between manufacturers, distributors and retailers."
These are the type of political risks that can destroy small businesses and result in major layoffs in larger companies. Keep questioning the political viability of your product line in terms of tariffs, taxation, and secondary logistical considerations of shipping.
