Major cannabis vaporizer companies are shifting manufacturing operations away from China due to rising tariffs, now totaling 45%, initially imposed during the Trump administration. Industry leaders fear these increased costs may drive some businesses to cut corners, potentially endangering consumer safety.
The Impact of Tariffs on the Vape Industry
The cannabis vape industry has long relied on Shenzhen, China, as a primary manufacturing hub. However, U.S. tariffs on Chinese goods—starting with a 25% duty in 2018 and increasing to 45% in 2025—have forced companies to seek alternatives.
While larger vape companies have been relocating manufacturing to Malaysia, Indonesia, and other Southeast Asian nations, many businesses still depend on China for critical components like ceramic heating elements, circuit boards, and borosilicate glass.
Industry Leaders Respond to Rising Costs
Pax: Absorbing the Cost to Protect Consumers
San Francisco-based Pax has been absorbing tariff-related expenses to keep vape products affordable. The company now manufactures certain devices in Malaysia, while its flagship pods and batteries remain made in China.
“A 25% tariff was already significant, and now at 45%, we had to rethink our strategy,” said Laura Fogelman, Pax’s VP of Communications.
Ispire Technology: A Shift to Malaysia
Los Angeles-based Ispire Technology, a division of e-cigarette brand Aspire, has diversified manufacturing, with a third of its products now made in Malaysia. The company is expanding operations further with a new facility featuring 70 production lines, some dedicated to cannabis vape hardware.
Michael Wang, Ispire’s Co-CEO, said that regardless of political leadership, trade tensions with China will persist:
“It doesn’t matter who is in the White House—the geopolitical shift has already happened, and it’s not reversing.”
Active (formerly AVD): China Still Plays a Key Role
While Active, a leading vape hardware manufacturer, has moved some production to Southeast Asia, General Counsel Douglas Fischer notes that China remains a crucial supplier for essential vape components.
Shipping Costs and Supply Chain Challenges
Tariffs are not the only cost concern. Shipping expenses from China to the U.S. are comparable to those from Southeast Asia. However, many cannabis companies lack proper logistics planning, forcing last-minute air shipments instead of cost-effective cargo shipping.
“Companies could save up to 70% by using cargo shipping, but most smaller operators don’t plan ahead,” said Nick Kovacevich, Corporate Relations Director at CCell.
Rising Safety Concerns in the Vape Market
Industry experts warn that the higher cost of compliant vape cartridges may push some companies to buy low-quality, untested products from unregulated suppliers. This raises serious health risks for consumers, particularly if contaminants or heavy metals leach into vape oil.
“There’s a real concern that cheaper, lower-quality vape cartridges will flood both the regulated and illicit markets,” said Douglas Fischer, president of VapeSafer.
To mitigate risks, cannabis businesses are urged to demand transparency from suppliers and request:
- Heavy metal testing results
- BPA testing certification
- Shelf-stability data to check for contaminant leaching over time
The Future of Cannabis Vaping Amid Trade Tensions
As tariffs rise and manufacturing shifts, the cannabis vape industry faces a critical turning point. Companies must navigate supply chain disruptions, rising costs, and safety concerns to maintain product integrity while remaining competitive.
With some operators warning that these financial pressures could force smaller brands out of business, the industry must find sustainable solutions to ensure safe and affordable consumer vape products.