Altria (NYSE:MO) and Philip Morris (NYSE:PM) are facing downward pressure in the market today following an announcement by British American Tobacco (BTAFF).

The company revealed plans to write down the value of certain U.S. cigarette brands by approximately £25 billion ($31.5 billion).

In response to this news, Altria witnessed a decline of 2.4%, while Philip Morris experienced a 1.8% drop.

This strategic move by BAT is a response to ongoing challenges facing tobacco companies, including stringent regulations, heightened awareness of health risks, and a decline in cigarette volumes in certain markets.

BAT cited economic difficulties in the U.S., where inflation-conscious consumers are opting for cheaper brands, and the growing popularity of illicit disposable vapes impacting its U.S. cigarette division.