Why Legal Weed Prices Are Rising: Trump’s Tariff Effect Explained

Key Takeaways

• Tariffs on Chinese and other imports are raising the cost of cannabis-related products in the U.S., including vapes, packaging, and grow equipment.

• The cannabis industry relies heavily on Chinese manufacturing, with roughly 90% of vape hardware and most packaging sourced overseas.

• Higher product prices may push some consumers back to the illicit market, threatening legal businesses.

• Small cannabis companies are especially vulnerable, as many cannot afford the added costs and face difficult financial choices.

• These challenges could force the industry to rethink its supply chains, potentially leading to more domestic production in the future.

If you thought your favorite cannabis products were pricey enough already, brace yourself. President Donald Trump’s latest round of import tariffs could make everything from vape pens to edibles more expensive in the U.S..

Cannabis companies rely heavily on parts and supplies from overseas—especially from China—so when those imports get slapped with extra taxes at the border, the added costs tend to roll downhill to shoppers.

These “tariffs” are essentially taxes on imported goods, meant to make foreign products pricier and protect American industries. In 2025, the Trump administration imposed sweeping tariffs on imports from China, Canada, Mexico, and the European Union, adding about 10%–25% in duties on many products​. That’s on top of earlier trade-war tariffs from Trump’s first term, so some goods from China now face combined import taxes as high as 45%. In short, the U.S. has hiked up trade barriers, and everyday items – including cannabis-related products – are caught in the crossfire.

Dependent on Imports: How Cannabis Supply Chains Rely on China

Why does a tariff on Chinese goods matter to your weekend weed session? Because the cannabis industry’s supply chain is global, even though the plant itself is grown domestically. Growers and retailers depend on imported equipment and packaging to produce and sell their products. Take vaporizers and vape pens: roughly 90% of vape hardware (cartridges, batteries, etc.) is made in China. Shenzhen in southern China is known as the vaping hardware capital of the world, so nearly every legal cannabis vape on U.S. shelves has components that originated overseas.

And it’s not just vapes. Everything from specialized glassware and metal grinders to child-resistant plastic jars often comes from Chinese factories or other Asian suppliers​​. Domestic alternatives are limited or more expensive, so cannabis businesses source these materials abroad, where costs are lower. One industry analysis noted that most cannabis packaging items – from pre-roll tubes to mylar bags and glass jars – are imported because overseas prices are hard to beat​. If tariffs drive up those costs, companies either have to pay more or scramble to find U.S.-made substitutes (assuming any exist at scale).

The cultivation side of cannabis also feels the squeeze. Indoor grow operations rely on high-tech gear like LED grow lights, hydroponic systems, and climate control units – much of which is manufactured in China​. Even basic supplies such as fertilizers or soil additives might come from abroad. For instance, key growing inputs like certain compost and peat are often imported from Canada, which now faces new U.S. tariffs as well​. As one supplier explained, some cannabis accessories have truly international assembly lines: “We work with a manufacturer who imports their glass from China, the wood is imported from Canada, and it’s put together in Mexico before it’s distributed in the U.S. How is that getting taxed?”​. In a trade dispute scenario, each leg of that journey could get hit with a tariff, stacking multiple taxes onto a single product when it reaches a dispensary.

Sticker Shock for Consumers: Higher Prices and Fewer Choices

For consumers, these tariffs are bad news for the wallet. Most cannabis businesses don’t have the profit margins to absorb a 10–15% cost increase, so they will likely pass those costs on to buyers. That means higher retail prices for items like vape cartridges, pre-rolled joints, and other accessories in the coming months. “Manufacturers are passing these tariff costs down the line, and it will ultimately impact our customers,” warned Brad Wasserstrom, president of a packaging supply firm for cannabis companies. He’s already seeing demand softening as prices creep upward. Don’t be surprised if your go-to $40 vape cart becomes a few dollars more expensive.

There’s also the worry that pricier legal cannabis could push consumers back toward the illicit market. Legal weed is already taxed heavily at the state level; if products get even costlier due to tariffs, some shoppers might seek out untaxed (and untested) options on the black market. Analysts caution that this dynamic could further dent legal sales and undermine licensed dispensaries’ bottom lines​. After fighting so hard to lure people away from street dealers with safe, regulated products, legal cannabis providers now fear losing customers because of economic pressures.

Small Businesses Squeezed: Thin Margins and Tough Choices

Tariffs aren’t just hitting consumers; they’re also squeezing cannabis companies themselves, especially the smaller players. Many cannabis entrepreneurs operate on razor-thin margins due to high taxes and strict regulations. “Most cannabis businesses don’t have the margin flexibility to absorb a 10%-15% increase,” explains Mike Forenza of AE Global, a packaging supplier for the industry. So when their costs go up overnight thanks to tariffs on vape batteries or packaging supplies, they face a tough choice: either raise prices (and risk losing customers) or eat the costs (and risk going out of business).

Pivoting away from Chinese suppliers isn’t easy, either. After decades of refinement, China’s manufacturing ecosystem for electronics and packaging is hard to replace quickly. Small firms trying to switch to new suppliers in other countries can face hurdles with higher prices, limited production capacity, or longer shipping times. Even companies that diversify their supply chain often still rely on Chinese-made parts or materials, meaning they can’t entirely escape the impact of tariffs​. In short, smaller cannabis businesses are caught in a bind: global trade politics are raising costs, but they cannot adapt overnight.

Coping Strategies and Outlook

Facing these challenges, cannabis companies are looking for ways to adapt. Some larger firms began shifting manufacturing to countries like Malaysia or Vietnam, which aren’t subject to the China tariffs. By diversifying production, they hope to cushion the blow of trade taxes, although setting up new supply lines takes time and money. Other businesses are stockpiling inventory before tariffs fully drive up prices, or hunting for niche domestic suppliers to fill gaps. There’s even renewed talk of investing in U.S.-based manufacturing for vape hardware and other accessories, so the industry isn’t so dependent on imports in the future.

For now, many cannabis companies will have to tighten their belts and get creative to stay afloat. The cannabis sector has proven resilient through past challenges, and insiders hope it can also innovate through this. Some experts note that, ironically, these tariffs could eventually spur positive changes – like more efficient production or localized supply chains – making the industry stronger in the long run​. But right now, both businesses and consumers are feeling the strain.

Bottom line: Legal cannabis in the U.S. is caught in the crossfire of a global trade battle, making it more expensive to buy and tougher to produce. It’s a stark reminder of how international politics can hit home in unexpected ways. The industry’s ingenuity will be tested, but one thing’s for sure – getting high is getting more expensive.

How to Save Money on Cannabis Despite Rising Costs

While you can’t control tariffs or trade policy, there are ways to stretch your cannabis budget. Here are a few simple tips to keep your stash stocked without breaking the bank:

• Buy in Bulk (Legally)
  Larger quantities usually mean a better price per gram. If local laws and your consumption habits allow, buying an ounce instead of a few grams at a time can save serious cash.

• Shop During Deals & Happy Hours
  Many dispensaries offer regular discount days, first-time buyer deals, or “happy hour” specials. Signing up for newsletters or loyalty programs can help you stay informed.

• Switch to Flower (If You Can)
  Vapes and edibles often have higher production costs, especially now with hardware tariffs. Old-school flower is usually more affordable per dose.

• Use Every Last Bit
  Save your AVB (already vaped bud) for edibles or tea, reuse roaches, or invest in a grinder with a kief catcher to make the most of every bud.

• Support Local, Smaller Brands
  Some smaller producers are working hard to keep costs down and offer great value. Check out local growers or brands that avoid heavy reliance on imports.

• Grow Your Own (Where Legal)
  If your state allows home cultivation, this is the ultimate cost-saver in the long run. After the initial setup, you could yield ounces at a fraction of dispensary prices.

What do you think about Trump’s tariffs? Let us know in the comments.