The U.S. legal cannabis industry has been suffering over the last two years under an indecisive federal government — and now it's getting squeezed from two unexpected angles: Tariffs and Visas add to the cannabis industry's misery. For businesses and workers alike, what once looked like a budding success story is showing greater turbulence.
The first punch comes via international trade policy. Many cannabis-adjacent businesses — from vape cartridge manufacturers to packaging suppliers and cultivation equipment importers — rely heavily on overseas inputs, especially from China. Recent U.S. tariffs on Chinese goods — in some cases raising rates to 30–50% or more — have forced costs up, and the ripple is hitting weed-industry players hard.
According to one industry analysis, the cost to produce a typical vape unit is rising by a few cents apiece because of tariffs on hardware and packaging. With thousands of units produced monthly, it adds up quickly. Some companies are absorbing the hit, but others expect the increases to eventually land on consumers — or push buyers back into illicit markets.
What makes this especially tough for cannabis businesses: margins are already razor-thin, regulatory burdens are high, and the domestic supply chain just isn't built out. Switching suppliers takes time; finding U.S.-based manufacturers meeting regulatory compliance is even harder.
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