B.C.'s cannabis industry is facing disruptions from tariffs, at a time when the sector is already facing challenges. Supply chains, in the form of packaging materials and cultivation equipment, are the areas where tariffs are having the most impacts on cannabis producers, said DIG360 executive retail advisor Rick Bohonis in an email response.
The cannabis product itself is not being impacted, as cannabis imports and exports between Canada and the U.S. are not allowed, he said. Increased costs from tariffs affect ancillary products like mylar packaging, aluminum cans, batteries and child-resistant containers imported from China, said Bohonis.
This industry is no different than other industries in how they deal with rising costs—will producers eat the increased costs or pass them on to consumers, he said.
U.S. President Donald Trump imposed wide-reaching 25 percent tariffs on Canadian goods on March 4, which was subsequently countered by Prime Minister Mark Carney with tariffs on $30 billion worth of American goods, including steel and aluminum products, and even large appliances.
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