British American Tobacco Plc’s growth in smoke-free products was dragged down by the prevalence of illicit vapes in the US market, pushing the cigarette maker to provide disappointing guidance for 2025.

Shares fell as much 9% as it revealed a slight decline in US vape sales, which it has touted as the future of the smoking industry.

British American Tobacco remains hopeful that President Trump's administration will address the growing issue of illegal vapes in the U.S. With billions at stake, major companies urge enforcement against unauthorized products that threaten legal market shares while anticipating potential market shifts if regulatory changes are enacted.