The unfathomable economic strategy behind President Trump’s tariffs on global goods has almost all US industries scratching their head and scared for the future.
The US cannabis market is closed, which means that almost all US marijuana must be grown within the US and can’t even be traded between states. It could therefore be considered one of the best protected markets following the announcements made yesterday.
But the rising costs of packaging and equipment, both of which are imported largely from Asia, is set to erode the margins, already thin.
Deb Tharp, a cannabis consultant and business advisor, said that the strategy seems to aim at stimulating US production. MEDCAN24 It appears that, unlike COVID there is no easy access to funding or credit for these businesses to expand or start new ones.
Given the rapid pace at which these tariffs have been introduced, there is nothing set aside to ‘soften the blow’ and help businesses adjust to additional costs.
Tharp continued to say that many state legislators, in the case cannabis packaging have greatly exacerbated this situation by requiring that the packaging is childproof.
Many states have strict packaging laws, which means that manufacturers must look for affordable suppliers. This is why the vast majority of producers turn to China.
Tharp said that US manufacturers were not able to compete with the price of goods imported from China. Prices will increase 34%.
Although these increases seem minimal in comparison to those of the automobile industry, cannabis businesses already operate with thin profit margins. This means that the cost will be passed on to consumers.
This could, as she said, have an additive effect. The higher prices may drive consumers into the black market. This will not only undermine the argument for legalization, but could also lead to further regulations being placed on the legal sector, increasing costs.
It’s another nail for the business coffin. The business has bigger issues to address right now.
Nearly every US industry is baffled by the economic strategy behind President Trump’s tariffs on global products. They are also worried for their future.
The US cannabis market is closed, which means that almost all US marijuana must be grown within the US and can’t even be traded between states. It could therefore be considered one of the best protected markets following the announcements made yesterday.
But the rising costs of packaging and equipment, both of which are imported largely from Asia, is set to erode the margins, already thin.
Deb Tharp, a cannabis consultant and business advisor, said that the strategy seems to aim at stimulating US production. MEDCAN24 It appears that, unlike COVID there is no easy access to funding or credit for these businesses to expand or start new ones.
Given the rapid pace at which these tariffs have been introduced, there is nothing set aside to ‘soften the blow’ and help businesses adjust to additional costs.
Tharp continued to say that many state legislators, in the case cannabis packaging have greatly exacerbated this situation by requiring that the packaging is childproof.
Many states have strict packaging laws, which means that manufacturers must look for affordable suppliers. This is why the vast majority of producers turn to China.
Tharp said that US manufacturers were not able to compete with the price of goods imported from China. Prices will increase 34%.
These cost increases may seem small compared with the auto industry but the razor-thin margins that cannabis companies are forced to work on means they will have to pass these costs onto consumers.
This could, as she said, have a cumulative impact. The higher prices may drive consumers into the black market. This will not only undermine the argument for legalization, but could also lead to further regulations being placed on the legal sector, increasing costs.
It’s another nail for the business coffin. The business has bigger issues to address right now.
Cannabis Law Resources in Poland
Browse essential legal pages on cannabis sales and cultivation in Poland. These guides will help you understand the legal requirements, such as certification, permissions, and compliance.
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Polish News Registration and Interests of Cannabis Businesses
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Permissions for Cannabis Sales in Poland
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Authorization for Importing or Manufacturing Medical Products
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Permission for Manufacturing or Importing Medical Products
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Certificate of Good Manufacturing Practices (GMP)
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Registration of Medical Products in Poland