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Cannabis is a global industry, and foreign policies are now impacting our domestic market. In February 2025 the U.S. imposed additional tariffs on broad categories of Chinese imports, including vaporizer and vaping hardware that our industry relies on. These new duties amount to roughly a 35% tariff on common cannabis accessories[1]. Trump’s reckless trade policies and tariffs taxes have a significant impact on the cannabis and hemp industries, even though these policies don’t directly target cannabis products themselves. Specifically, some of the defined indirect Trump Tariff Tax impacts on the cannabis and hemp industries will include:

Increased Costs: Tariffs on imported goods used in the cannabis and hemp industries lead to higher operational costs. This includes items like:

Vape hardware: The vast majority of vape cartridges, batteries, and hardware are manufactured in China, and these have been subject to increased tariffs, causing price spikes.

Packaging materials: Child-resistant packaging and branding materials, often sourced from China, become more expensive.

Cultivation equipment: Grow lights, HVAC systems, and other equipment used in indoor cultivation, often imported, face increased costs.

Infrastructure materials: Steel and aluminum used in construction can also become more costly due to tariffs.

Supply Chain Disruptions: The reliance on global supply chains for these materials means that tariffs can disrupt operations and make it challenging for businesses to maintain profitability.
Potential for Higher Consumer Prices: As businesses face increased costs, they may pass these expenses onto consumers, leading to higher prices for cannabis products.
Risk of Driving Consumers to the Illicit Market: Increased prices in the legal market could encourage price-sensitive consumers to turn to the black market, which undermines the growth and safety of the legal industry[2].

American businesses that import these parts are facing suddenly higher costs, prompting some to seek alternatives or pass increases to consumers.

Meanwhile China has tightened its export regulations on hemp. As of September 2024, China classified CBD as a controlled “precursor chemical,” requiring exporters to obtain specialized licenses. This change creates uncertainty for U.S. hemp producers who relied on Chinese supply chains for specialty inputs, and it could slow down or limit exports of U.S. hemp to China. Additional Trump Tariff Impacts on Hemp can include:

CBD and Fiber-Based Packaging: Hemp businesses may face higher import costs for CBD inputs and fiber-based packaging from Asia.
Export Risk: U.S. hemp grain intended for export markets may be at risk of being affected by retaliatory tariffs from other countries.

These international headwinds exacerbate the challenges facing our industry. Trump’s trade policies and tariffs significantly impact the industry through increased costs for essential materials and supply chain disruptions, potentially leading to higher prices for consumers and challenges for businesses and disrupted markets mean fewer resources for cannabis businesses. They also highlight how interconnected we are – we cannot treat U.S. policy in isolation. Change Maker Initiative will include these global factors in our electoral strategy and legislative advocacy: we will push for fair trade policies, support domestic manufacturing of key inputs, and work to ease unwarranted regulations abroad. For now, the takeaway is urgent: protecting our industry means paying attention to the world stage.

Call to Action: Learn more about these international challenges and how Change Maker is responding by visiting our website at https://www.futurepac.today/changemaker/. Follow us and Eric Foster on social media for updates. By uniting our industry, we can withstand these global pressures and keep legal cannabis growing.

About The Change Maker Initiative

The Change Maker Initiative is the industry’s best and only path forward to secure long-term executive branch and legislative victories and regulatory stability. The current political and legal landscape is hostile, but by learning from the success of the crypto industry, we can build an unstoppable political force that will protect and expand cannabis and hemp industries. The Change Maker Initiative (CMI) will shift from a state-by-state ballot measure and disjointed hope and inference Federal approach to a federal and state coordinated electoral office strategy, with voter-industry customer engagement, diversification of lobbying and legal strategies to change the lawmakers and change our future.

The time for action is now. Will your company invest in securing its future? Will your organization stand with us in defending civil rights, economic justice, and cannabis equity?

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