Trump Tariffs to Hit Pot Industry
Cannabis may be the next commodity to be hit by the Trump administration’s sweeping trade tariffs.
As Forbes writer Julie Weed explains, a number of cannabis-related products, including vaping devices, batteries, and filters and cartridges, are subject to new tariffs coming down the pike. That means an increase in prices for both recreational and medical marijuana consumers here in California.
There is also reason to worry that the cannabis industry will feel the impacts of the new trade policies more than others -- or that it will be less able to weather the storm.
Cannabis companies are especially vulnerable to changes in their input costs said [New Jersey Marijuana Retailers Association President Juan Carlos Negrin] because they are not allowed to deduct business expenses from their taxes. That lowers their profit margins. “A tariff on goods the companies use in daily operations will have a substantially negative impact on their earnings,” he said.
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