In 1994, the Canadian federal government reduced its tobacco excise tax. Quite a lot too, nearly 50%. It wasn't a libertarian whim, or the desperate power grab of a cigar-lover. The black market was rampant. About 30% nationally approaching nearly 100% in some communities. (Clever: you can measure the rate by collecting butts from public ashtrays and the street.) Prohibition doesn't eliminate demand. And in the Canad…
At first, I was going to state that it would be interesting to compare organized crime trafficking tobacco to other drugs where there is no long running commercial history. But then I saw the southern border states are theorized high in importing smuggled cigarettes. So either wyoming, idaho, and nevada are supporting the whole western US, or some of it's coming up from mexico.
2012 https://taxfoundation.org/cigarette-taxes-and-cigarette-smug...
2017 paper arguing tax increases do not exacerbate this https://tobacconomics.org/uploads/misc/2017/11/2017-generic-...