If you thought your cannabis products were already expensive enough, brace yourself—they’re about to get pricier thanks to President Trump’s latest round of tariffs.
Why Cannabis Prices Are Rising
The sweeping tariffs announced by President Trump on Wednesday will hit the cannabis industry particularly hard. Why? Because much of the equipment and supplies used in the cannabis business come from overseas, especially from Asia.
Many essential items in the cannabis supply chain are difficult to produce domestically:
- Specialized glass for smoking devices
- Vape hardware and components
- Metal tins and packaging materials
These new tariffs will pile on top of existing duties already imposed on imports from China, Canada, Mexico, and the European Union.
Industry Insiders Are Worried
The cannabis industry is sounding the alarm about these new costs. Bryan Gerber, CEO of Hara Supply (the world’s largest manufacturer of cones and combustibles), warns that companies need to “take a serious look at how they might absorb the extra costs or alter partnerships” if they rely on exports from countries facing tariffs.
The market has already reacted negatively, with shares of major cannabis companies like Tilray Brands, Canopy Growth, Organigram, and Terrascend dropping between 5% and 10% on Thursday.
Consumers Will Bear the Burden
Unfortunately for cannabis users, most of these increased costs will likely be passed directly to consumers. Mike Forenza, managing partner at packaging company AE Global, explains the harsh reality: “Most cannabis businesses don’t have the margin flexibility to absorb a 10%-15% increase.”
This price hike creates another serious problem—it could push more consumers toward the illicit market, where prices aren’t affected by tariffs. This shift would further squeeze legal cannabis businesses already operating on thin margins.
The Effects Are Already Being Felt
The impact isn’t just theoretical—it’s already happening. Brad Wasserstrom, president of supply chain firm Wasserstrom Co., reports that “manufacturers are passing these tariff costs down the line and it will ultimately impact our customers. We are starting to see a softening in the market and inbound order rates starting to slow.”
A Complex Trade Web
What makes this situation particularly challenging is the international nature of the cannabis supply chain. Even products that seem simple involve multiple countries:
“We work with a manufacturer who imports their glass from China, the wood is imported from Canada, and it’s put together in Mexico all before it’s distributed in the U.S. How is that getting taxed?” Wasserstrom points out.
The North American trade situation adds another layer of complexity. Materials needed to grow cannabis—including compost and peat imported from Canada—will also become more expensive under the new tariffs.
For both the cannabis industry and its customers, these new tariffs mean one thing: getting high is about to get more expensive.
