How will tariffs affect cannabis in the U.S.?

In 2025, the Trump Administration imposed tariffs on nearly all imported goods, with announcements that more tariffs are on the way. These policy changes have raised concerns about higher costs on consumer goods, including food, medications, and household items.

A tariff is a tax imposed by a country on an imported good. Countries impose tariffs to negotiate and manage trade relationships, and to encourage domestic production by making imported goods more expensive.

When tariffs are imposed, businesses that import goods usually raise prices on products, meaning consumers pay more.

These tariffs affect many industries, including the cannabis industry and cannabis-related supply chains. Find out how these changes may affect you, whether you’re a cannabis user or business owner.

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Cannabis tariff effects on businesses

Federal law prohibits cannabis from crossing state lines. This means each state that has legalized cannabis requires the plant to be grown within its borders. Therefore, cannabis itself will not be subject to tariffs.

However, tariffs impact all sectors of the cannabis industry because most businesses rely on imported materials, including:

• Growing materials, like fertilizers, grow lights, grow tents, and ventilation systems
• Packaging, like jars, bags, and bottles
• Machinery, such as equipment for extraction, distillation, and testing
• Vaporizer hardware, like cartridges, batteries, and coils
• Glass and plastic accessories, including grinders, pipes, and dabbing equipment

Historically, most of these goods have come from China, and as of October 2025, the U.S. has proposed the highest tariffs on Chinese products.

Currently, importers must pay a 30% baseline tariff on all Chinese goods. China’s retaliatory tariffs have prompted the Trump Administration to announce an additional 100% tariff on Chinese imports effective November 1, 2025 — in addition to the existing rates — though exact details of how it will be implemented remain unclear.

How are businesses responding?

Rising tariffs have increased manufacturing costs beyond what some cannabis businesses can afford.

According to Forbes, some cannabis manufacturers are turning their attention to Southeast Asian exporters, such as Indonesia or Malaysia. However, these shifts come with their own logistical hurdles, including smaller facilities that struggle to keep up with growing demand.

For many companies, the only way to keep up with tariffs is to raise prices on products, causing recreational consumers and medical cannabis patients to pay more for cannabis.

Cannabis tariff effects on customers

Many people who use cannabis are already seeing higher prices at dispensaries. Some may notice certain products missing from shelves as businesses navigate rising manufacturing costs.

Businesses shifting to alternative suppliers may have changes in their products, from the ingredients used to make edibles to the quality of their vaporizer hardware. As a result, consumers could start to notice differences in their preferred products.

These changes can have larger implications for medical users. For them, rising tariffs can mean:

• Disruptions in the availability of products they rely on for relief
• Higher costs on products they depend on to manage symptoms
• Formulation changes that affect product efficacy

Will Trump’s tariffs spike cannabis costs?

If additional tariffs take effect, prices for certain cannabis products that rely on imported materials, such as vape hardware and some packaging, are likely to increase.

Because of high uncertainty surrounding the future of the Trump Administration’s tariff policy, it’s hard to know how high these prices will rise or when they may go back down.

What to do about cannabis tariffs

While the future of cannabis-related tariffs is unclear, there are some ways that cannabis consumers can prepare for potential price increases:

• Grow your own cannabis: In states where it’s legal to grow cannabis under a medical-use program, growing your own can be more cost-effective than purchasing cannabis from a dispensary.
• Seek discounts: Many dispensaries offer stackable discounts, loyalty programs, and other deals. Seniors, veterans, first-time customers, and medical cannabis cardholders might also qualify for special discounts.
• Get a medical cannabis card: In many states, having a medical cannabis card allows you to pay lower taxes or receive special pricing exemptions on cannabis products. Rules and specific discounts vary by state.

If you are a cannabis business owner, consider alternative suppliers for imported materials that are subject to tariffs.

The bottom line: Tariffs impact both cannabis businesses and consumers

While the cannabis you purchase from dispensaries is grown in the U.S., many materials that cannabis businesses depend on are imported — often from China.

Rising tariffs on imported goods are forcing some cannabis businesses to raise prices on products.

There are some ways that cannabis consumers can cut down on spending, such as growing cannabis at home or getting a medical card to save on taxes.

Get your medical marijuana card

Select State

Get started