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Even US-made e-liquids and open-system vapes were seized in the recent raids by US authorities. Photo credit: Rawpixel.
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A 2024 campaign promise to “save vaping” resonated with adult consumers, retailers, and the vape industry. Recent actions by authorities beg to differ. Photo credit: Vaper City, CC4.0.
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Most of the seized items in the raid were e-liquids which have pending PMTA with FDA. Photo credit: Easy-Peasy AI.
In early September, US regulators conducted the most significant enforcement actions yet against the independent vaping industry, seizing millions of unauthorized e-cigarette products in coordinated raids and border operations. The unprecedented scale of the seizures highlights how federal policy is transforming the US nicotine market and raises concerns about the future of small businesses that once believed president Donald Trump’s 2024 campaign pledge to “save vaping.”
On September 10, US Marshals and US Food and Drug Administration (FDA) agents, in cooperation with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), raided multiple distributors and retailers across six states. One of the primary targets was Midwest Goods Inc., a major wholesale supplier located in Bensenville, IL. Later that day, FDA and US Customs and Border Protection (CBP) announced a separate seizure of 4.7 million unauthorized vaping products at the Port of Chicago, valued at more than US$86 million. Federal officials described it as the largest e-cigarette seizure in US history.
Health and Human Services (HHS) secretary Robert F. Kennedy, Jr., FDA commissioner Marty Makary, and US attorney general Pam Bondi traveled to Illinois to stand before tables of confiscated products and highlight the administration’s message: enforcement is accelerating, and unauthorized nicotine products – whether imported or manufactured domestically – are now at risk.
Federal raids and seizures
Agents arrived at the Midwest Goods warehouse in suburban Chicago early in the morning. By midday, trucks were being loaded with seized products, and federal officials displayed examples of flavored e-liquid bottles such as “Watermelon Ice” for the cameras. Bondi accused companies of targeting minors through “candy-like names and patriotic packaging.” She then added, “Don’t let the American flag fool you. It’s Chinese.”
Kennedy estimated that 50 truckloads of product were taken from Midwest Goods, with “about 90% originating from China.” He said the seizures resulted from undercover purchases in multiple states, part of a coordinated federal operation that also targeted businesses in Arizona, Florida, Georgia, New Jersey, and North Carolina.
The Port of Chicago seizure announced later the same day targeted shipments described as undervalued or mislabeled to avoid inspection. Officials stated that the goods originated almost entirely from China. “All e-cigarette products seized in this operation lacked mandatory premarket authorization from the FDA and therefore cannot be legally marketed in the United States,” FDA and CBP said in a joint statement.
Makary emphasized the agencies’ role in blocking imports. “If a product has not been authorized by FDA, CBP will seize, detain, or destroy it,” he said. FDA has authorized only 39 products for sale in the US so far, leaving almost all other devices and flavors – from Chinese disposable vapes to US produced bottled e-liquids – unauthorized.
Kennedy described the seizures as decisive action to protect young people. “We will never allow foreign actors to threaten the health of America’s children,” he said, and thanked Trump and Bondi for their support.
Federal data indicate that the enforcement effort is intensifying. Including the Chicago seizures, FDA and CBP report they have blocked more than 6 million units worth over US$120 million from entering the US this year alone. Officials also warned 37 importers and entry filers involved in the shipments that providing false declarations is a federal crime.
Impact on the industry
For the independent US vaping industry, the raids mark a turning point. While much public attention has been focused on flavored disposable vapes made in China, the Midwest Goods case has shown that enforcement is also targeting American-made bottled e-liquids used in refillable, open-system devices.
In a statement, Midwest Goods challenged the government’s framing, calling the raid a “civil seizure action.” The distributor explained that most of the confiscated inventory was nicotine liquids from 75 different brands, many of which still had pending pre-market tobacco product applications (PMTA) with FDA. Typically, products with pending PMTA have been allowed to remain on the market until the reviews are completed.
“We find FDA’s actions particularly troubling given reports earlier … that FDA plans to expedite reviews of several tobacco products manufactured by Big Tobacco companies,” Midwest Goods said. The firm noted that many of the seized products are made by US businesses employing “hundreds if not thousands of workers.”
The company also emphasized that it had tried to comply after an FDA inspection in August, removing some products and offering to cease selling others flagged by regulators. “FDA acknowledged receipt of our correspondence but did not request that we stop selling any other products,” Midwest Goods said.
Industry advocates warn that enforcement against distributors could have ripple effects throughout the supply chain. Tony Abboud, executive director of the Vapor Technology Association, told local media: “When you go after distributors, that means everyone downstream, including all the small mom-and-pop businesses that they supply, will have to shut down.” Abboud said the seizures risk eliminating products that millions of adult smokers rely on as alternatives to cigarettes and could cost the government billions in lost tax revenue.
The industry has long complained about uneven treatment, highlighting that independent companies face lengthy PMTA reviews and increased enforcement, while multinational tobacco firms continue to sell cigarettes and are developing new oral nicotine and heated products through faster pathways. The Midwest Goods seizure, they argue, illustrates this imbalance.
Trump’s pledge and Big Tobacco
The enforcement actions also draw attention to the political context. During his 2024 campaign, President Trump promised to “save vaping,” a pledge that resonated with adult consumers and independent retailers worried about flavor bans and regulatory crackdowns. Vaping groups even launched an advertising campaign titled “Promises Made; Vapes Kept” to highlight Trump’s commitment to protect flavored products and small businesses.
Yet, the raids point to a different path. Officials close to Trump – including Kennedy, Bondi, and Makary – have taken prominent roles in condemning unauthorized vaping products and highlighting risks to youth. Their comments in Illinois focused heavily on concerns about Chinese-made disposables and youth marketing, but the seizures also impacted American-made e-liquids from companies with pending FDA reviews.
For small manufacturers, the contrast is stark. On the one hand, FDA has announced that it will fast-track applications for certain nicotine pouch products manufactured by major tobacco companies, including Altria, British American Tobacco, and Philip Morris International. On the other hand, distributors like Midwest Goods face mass seizures even when products have not yet been formally denied.
The broader US market context is also important. Nicotine pouches are the fastest-growing tobacco category in the country, while e-liquid sales are limited by regulatory uncertainty. The crackdown could accelerate this change, strengthening the market power of the largest companies and creating additional barriers for independents.
Industry observers say the policy direction is clear: enforcement will tighten, and only a small group of FDA-approved products will stay available. Whether this outcome matches Trump’s campaign promise is now a key concern for millions of adult vapers and the thousands of retailers who serve them.
Outlook for the market
The combined seizures – 50 truckloads from a single distributor and 4.7 million units from port shipments – represent more than a regulatory milestone. They are a warning to the supply chain that both imports and domestic inventories are under scrutiny. For distributors, the risk of sudden enforcement has never been higher. For retailers, the removal of product lines may mean empty shelves. For consumers, especially those using refillable open systems, the range of options may narrow rapidly.
Independent firms are weighing their next steps. Midwest Goods said it is cooperating with authorities but signaled it may challenge the seizure in court. The company also faces two federal lawsuits in New York alleging illegal sales of flavored vaping products into the state.
Meanwhile, federal officials are presenting a united front. Bondi said the raids demonstrated the government’s commitment to prevent youth use. Kennedy framed the actions as part of a broader fight against foreign products entering US markets. And Makary pledged continued vigilance at ports and distribution hubs.
For the nicotine industry, the message is unambiguous: the enforcement landscape has shifted. Even as the FDA prepares to accelerate review of products from multinational tobacco companies, independent businesses find themselves under unprecedented pressure. The result may be a fundamental reshaping of the US vaping market – one that delivers on regulatory priorities but leaves unanswered questions about the future of consumer choice and small.