According to the Wall Street Journal, the Biden administration is considering whether to cap nicotine levels in cigarettes, sending tobacco stocks tumbling.
The administration is also trying to determine if it should reduce nicotine levels in conjunction with a ban on menthol cigarettes or as a separate policy. The US Food and Drug Administration (FDA) must respond in court to a citizens’ petition to ban menthol by April 29 by disclosing whether it intends to pursue the policy.
Following the report, at the end of trading on Monday 19 April, Altria shares fell 6.15% and British American Tobacco shares declined 2.2%. Even Philip Morris International, which does not sell or market cigarettes in the US, saw its shares drop 1.35%.