Cannabis businesses and ancillary companies are scrambling to adapt after former President Donald Trump’s sudden imposition—and partial reversal—of sweeping global tariffs sent shockwaves through the economy and jolted cannabis supply chains.
Trump’s “Liberation Day” announcement, aimed at upending longstanding U.S. trade policies, slapped hefty tariffs on goods from nearly 90 countries. Though a temporary 90-day pause was issued the same day for most regions (excluding China), the damage had already begun rippling through the cannabis sector.
“Tariffs are no longer abstract policy,” said Arnaud Dumas de Rauly, chair of the industry trade group VapeSafer. “They’re a direct threat to cannabis profitability.”
The industry, already burdened by razor-thin margins and strict regulations, is bracing for higher costs across the board—from cultivation and extraction equipment to packaging and vape components. Executives warn that passing these costs to consumers may drive more buyers to the illicit market.
Manufacturing hubs in Southeast Asia and the EU—key suppliers of point-of-sale systems, lighting, and raw materials—were initially hit with double-digit tariff hikes. China now faces a staggering 145% tariff after failing to meet Trump’s ultimatum, compounding an existing 25% levy on vape products retained from Trump’s first term.
Pax, a major vape manufacturer, finds itself squeezed between tariffs on Chinese components and retaliatory measures on Malaysian-made devices. “We’re evaluating every supply chain option, but global uncertainty is complicating everything,” said company spokesperson Laura Fogelman.
In the construction realm, cannabis facilities are facing price jumps of 10% to 40% on steel, security systems, and electrical equipment. Contractors are shortening quote windows and demanding upfront payments, pressuring businesses’ already-tight cash flow.
Seed importers, too, are affected. Tariffs on European genetics from countries like Spain and the Netherlands could increase seed prices up to 20%, potentially disrupting cultivation strategies.
David Craig of Illicit Gardens summed it up: “The cannabis industry is tough enough. These tariffs just made it tougher.”
As trade tensions simmer and timelines remain uncertain, cannabis companies are left navigating a volatile landscape with little room for error.
Read the whole article from MJBizDaily here.
