The industry will not escape tariff-related increases, despite core products being spared, reports CannIntelligence.

While no tariffs have been levied the international trade of core cannabinoid industry products – such as medical cannabis or hemp-derived cannabinoid products – pretty much anything else used with cannabinoid products will increase in price. And this is despite the pausing of the majority of “liberation day” tariffs on multiple US trade partners.

The remaining tariffs on Chinese imports into the US will have a massive impact on the price of cannabis goods on the US market, if tariffs on other import producers announced on liberation day are reinstated.

Cannabinoid products utilising vaping hardware imported from China have seen their prices nearly triple through the introduction of tariffs alone. Tariffs on vaping hardware currently stand at 180%, with nearly 150% of that amount added this year.

A 35% tariff has been carried over from president Donald Trump’s first term. That was then increased in two 10% tranches in February and March 2025 – purportedly as punishment for China’s lack of action in combatting the production and export of fentanyl to the US.

The now 55% tariff increased to 89% on 2nd April – Trump’s so-called liberation day – as part of a raft of measures taken against a long list of US trading partners (34% plus existing tariffs, which in the case of vaping was 55%). This was increased again on 8th April to 139% (84% on all Chinese goods on top of any pre-existing tariffs, which included the 35% rate from the first term and the two additional 10% increases in February and March).

A day later, it was increased again to 180% total – this time for “the lack of respect” China showed world markets by imposing retaliatory tariffs on US goods in response to Trump’s tariffs.

Supply costs getting higher

These general increases on Chinese imports also encompass a host of other goods. Companies involved with cannabinoids have complained that the cost of general items used by the industry, such as paper packaging, glass vials and tins, will all increase. Potentially, cannabis companies and retailers will be able to find alternative non-Chinese suppliers for some of these, which may result in a smaller price increase.

However, news reports say most of these are still difficult to find from other non-Chinese sources, despite being general consumer products used by a variety of sectors.

Companies are also looking at tariff-driven increases to specialised cannabis products that may be more difficult to find alternative sources for. These include products like specialised glassware and paper cones used for pre-rolls. These costs will almost inevitably be passed onto customers, cannabis companies say, because margins are too thin to absorb increases.

One company that produces pre-rolls has said it will shift some of its production to the US as the tariffs mean its cost-price is just as high for US production as it now is for the tariff-hit imports from China.

This purportedly fulfils one of Trump’s aims for instituting the tariffs. But it still leaves the end consumer having to make a choice about whether the purchase is necessary enough to justify the higher cost. For most consumers, all that will matter is the new retail price – regardless of any increase being due to US production or Chinese tariffs.

Deterrent to growth

Other existing tariffs could also have implications. Tariffs on Canada are active, but products that meet specifications stipulated under the United States-Mexico-Canada Agreement (USMCA) are currently exempt. For the cannabinoid sector, producers are most worried about tariffs on compost and peat from Canada, which should not fall under the USMCA exemptions that only cover certain agricultural goods, automotive parts and manufactured goods with North American supply chains.

Construction costs are also rising due to tariffs on materials. This includes raw materials for actual building as well as tariff-driven increased costs on final fittings, such as lights and heating, ventilation and air conditioning systems – both also important in a different way during the growing phase – as well as goods like furniture and shop display equipment.

Some companies are saying these costs are not yet being passed onto consumers in a noticeable way, as they pale in comparison to other costs such as labour and taxes. However, the increases are making expansion plans more difficult and putting some off making any moves to invest in growth. This means tariffs could continue to have an impact on the sector long into the future, regardless of whether they remain enacted.

CannIntelligence (www.cannintelligence.com) provides impartial, independent and premium market and regulatory analysis, legal tracking, and quantitative data for the cannabis and cannabinoids sector worldwide.

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