The U.S. international tobacco trade may have passed its peak. Consumption fell in 2016, with BAT reporting a 9% drop in sales. Total U.S. imports and exports peaked at $4.3 billion on an annualized basis in December, and had fallen by 3.3% by April. An all-time peak in U.S. tobacco exports in March likely reflects a timing anomaly from later-than-usual sales to China. Brazilian producers have seen a similar challenge, with a 15% drop in shipments in the 12 months to April 30. That was caused by lower sales to Europe by the local subsidiaries of BAT and JTI.