A new round of tariffs backed by Donald Trump is creating fresh uncertainty across the cannabis industry, forcing companies to rethink supply chains, absorb rising costs and navigate an increasingly complex trade environment.
The policy shifts stem from tariffs imposed under the International Emergency Economic Powers Act (IEEPA), which the administration has used to raise duties on certain imports. While the Supreme Court of the United States recently struck down a set of tariffs announced on April 2, 2025—dubbed “Liberation Day” by the president—the administration quickly responded by implementing a new global 10 percent tariff, with plans to potentially increase it to 15 percent.
For cannabis operators, the new duty compounds an existing 25 percent tariff on Chinese imports enacted during Trump’s first term under Section 301 Tariffs. Many products critical to cannabis production—including vaporizer hardware, cultivation equipment and packaging materials—are commonly manufactured in China.
Industry leaders say the overlapping policies are making business planning far more difficult.
Doug Fischer, general counsel for Seattle-based vape hardware company Active and president of advocacy group Vape Safer, described the situation as unpredictable. “The theme of this whole thing is uncertainty and volatility,” Fischer said, cautioning that the rapidly shifting tariff landscape makes it difficult for companies to forecast costs.
The financial pressure is significant for a sector already facing tight margins. According to Hirsh Jain, co-founder of consulting firm Ananda Strategy, higher import costs are likely to ripple through the cannabis supply chain, raising production expenses for everything from vape cartridges to packaging.
That burden is particularly challenging in a regulated industry competing with illicit markets, where businesses often cannot raise retail prices to offset higher costs.
Some companies have already adapted by shifting manufacturing or expanding operations abroad. Washington-based Custom Cones USA opened a logistics hub in Canada to serve licensed producers there after earlier tariffs significantly increased import costs. Co-founder Harrison Bard said container duties that once ranged from $2,000 to $4,000 rose to as much as $20,000 under previous tariff policies.
Other firms, such as vaporizer manufacturer Pax Labs, have moved portions of production from China to countries like Malaysia in an effort to mitigate tariffs.
Still, not all companies report severe disruptions. Jason Ambrosino, owner of New York cannabis manufacturer Veterans Choice, said his business has experienced little impact so far, noting that some overseas factories have absorbed part of the added cost.
Despite differing experiences, many executives agree the biggest challenge is the lack of clarity.
Industry leaders say tariffs appear likely to remain a central element of the administration’s economic policy, leaving cannabis companies bracing for continued volatility in the months ahead.
Read the whole article from MJBizDaily here.
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