The High Just Got Pricier: How Tariffs Are Blowing Up U.S. Cannabis Costs
If you thought weed was already expensive, brace yourself: it just got costlier, thanks to a wave of new tariffs proposed by Donald Trump. The former president’s plan to slap hefty taxes on Chinese goods—should he return to office—may have a surprising side effect: higher prices for cannabis smokers in the U.S.
Although marijuana is grown domestically, much of the industry’s gear and packaging—things like grow lights, vape cartridges, and even those sleek child-proof containers—are imported from China. With Trump’s latest tariff proposal of a 60% tax on Chinese imports, suppliers are scrambling.
“We’re talking about significant price hikes across the board,” said Kyle Lougheed, CEO of Canadian cannabis supplier Auraloop. “This isn’t about whether people will still get high—it’s about how much more it’s going to cost them.”
From Packaging to Puff: Where Tariffs Hit Hardest
Packaging, for instance, could see a 50% jump in price, and vape products could climb even higher. Cannabis businesses already grappling with tight margins and patchy state regulations might now be forced to pass these costs on to consumers.
With inflation cooling elsewhere in the economy, cannabis users could face a unique strain on their budgets.
“Consumers don’t understand why their weed suddenly costs $10 more,” Lougheed added. “But it’s not the dispensary—it’s the international supply chain.”
Ripple Effects Across the Global Cannabis Market
Retailers are considering everything from sourcing domestically to cutting product variety. But in a market where presentation, packaging, and pricing drive sales, there’s only so much wiggle room.
This development lands at a delicate time. Cannabis is gaining ground in the U.S., both medically and recreationally. Yet, federal legalization remains elusive, and businesses must still navigate a thicket of state-level red tape. Now, the added tariff tension is another cloud on the horizon.
Bottom line? For cannabis users, the cost of getting high might be heading even higher.
As global cannabis markets continue to evolve, the ripple effects of U.S. policy decisions are being felt well beyond its borders. Canada, a key exporter in the cannabis sector, is already adapting its strategy to maintain a competitive edge amid shifting international demand—explore more on Canada’s cannabis export market here. Meanwhile, in Europe, countries like Portugal are experiencing growing pains in balancing medical cannabis supply with rising demand, a challenge that could intensify if global supply chains tighten—read our deep dive on Portugal’s medical cannabis market.