The Trump administration’s imposition of tariffs on China is expected to have a direct impact on several sectors of the marijuana industry – in particular, cannabis vaporizer companies.
Others likely to be affected include:
- Cultivation operations that want to expand their greenhouse facilities.
- Growers that need to buy lighting equipment.
- Brands that purchase packaging from China.
- Businesses that buy materials made with Chinese-made steel and aluminum, such as extraction equipment.
“If I was in the vape industry or the lighting industry or greenhouse industry, I would be pretty concerned that costs were going to go up as the result of a trade war,” said Kevin Hogan, president and co-founder of Oregrown, a vertically integrated cannabis company in Bend, Oregon.
Here’s a review of the major factors developing around the issue for the cannabis industry.
1. Businesses are anxious their costs could go up because of a trade war.