Actually T massively reduced my stress and anxiety levels and has done for a lot of ftm on it by many accounts. Maybe it will for you as well.
Some evidence suggests smoking affects the levels of free T in your system, and other studies imply smoking can slow muscle growth when you're trying to build it. They're still being looked into though.
We know T may thicken the blood and raise the risk of blood clots/stroke; more viscous blood can exert more pressure on the vessels raising blood pressure. Nicotine constricts blood vessels, causing blood pressure to rise; smoking tends to cause a buildup of plaque in arteries and vessels making their diameter thinner and prone to blockage. The general strangulation effect of smoking on your vascular system combined with T means you'll be running a higher risk of heart attacks, strokes and blood clots... as well as other illnesses related to higher blood pressure.
It's difficult or even impossible to know what is in different herbal stuff to look at the risks, but I think it's probably safe to say T is the lesser problem, it's the smoking itself that causes the greater risk and damage to the body than T.