Tariffs are the word of the day – but marijuana consumers need to be ready to see a change also.

From apples to automobiles, hundreds of industries are trying to figure out the new tariffs.  What is clear is prices are going up on a random amount of things.  But, why is a surprise, is cannabis consumers are being hit by the tariffs also. Although cannabis itself cannot be imported or exported due to federal restrictions, the industry heavily relies on international suppliers for key components like vaporizer hardware, packaging, and cultivation equipment. For instance, products sourced from China now face cumulative tariffs as high as 45%, including a 10% increase imposed in February 2025. Similarly, imports from Canada and Mexico face 25% tariffs. These measures have particularly affected items like vape cartridges, batteries, and specialized packaging materials, which are difficult to source domestically at competitive prices. As a result, many cannabis companies are passing these increased costs down the supply chain to consumer

The financial burden of these tariffs is substantial. Analysts estimate that most cannabis businesses lack the margin flexibility to absorb a 10%-15% cost increase. This has led to higher retail prices for products like pre-rolls and vaporizers, potentially pushing consumers toward cheaper, unregulated black-market alternatives. Such a shift raises concerns about product safety and could undermine the legal market’s growth. Additionally, the tariffs have caused stock prices of major cannabis companies like Tilray Brands and Canopy Growth to decline by 5%-10%, reflecting investor concerns over profitability.Smaller businesses, already constrained by high taxes and limited banking access, are particularly vulnerable to these economic pressures.

Efforts to mitigate tariff-related expenses include exploring alternative manufacturing locations in countries like Malaysia or India. However, transitioning production is complex and time-consuming due to logistical hurdles and regulatory compliance requirements. Domestic production is another option but often comes with higher costs and limited capacity. Packaging regulations in many states exacerbate the situation by requiring child-resistant designs, further limiting affordable domestic alternatives. Some companies are exploring sustainable packaging solutions as a long-term strategy to reduce dependence on volatile international markets.

The ongoing trade tensions show no signs of easing under Trump’s administration, leaving cannabis businesses with little choice but to adapt quickly. Strategies such as diversifying suppliers, investing in automation, and innovating with local materials may help companies weather the storm. However, without significant policy shifts or financial support mechanisms, the industry faces a challenging road ahead.

The Fresh Toast is a daily lifestyle platform with a side of cannabis. For more information, visit www.thefreshtoast.com.

The Fresh Toast