While some companies and parts suppliers have stockpiled enough supply to not feel the effects yet, others are feeling the financial strain of the tariffs already.
As the United States and China continue to increase tariffs on each other’s goods, Michigan’s cannabis industry is getting caught in the middle.
President Donald Trump raised tariffs on China to 145% on most goods and 245% on electric vehicles and syringes. China hit back with 125% tariffs on all American exports just last week.
For Michigan’s cannabis industries, the conversation has now turned to parts, packaging and supplies, as much of that is being imported from China.
“It is just another thing to deal with, which it’s already an industry where you’re dealing with a lot,” founder of North Coast Travis Murphy said.
North Coast is a processing company that supplies just about everything that goes into the products inside dispensaries like House of Dank including vape parts and other materials.
“Vape carts, glass tips… custom boxes,” Murphy said about all the things he purchases and provides to the over 100 cannabis businesses he works with across the state.
Murphy primarily imports from China and so the price for him to buy recently went up, and so the price to sell could go up soon as well.
“For certain goods like a disposable vape, those cost $3 to $4 to import per unit,” he said. “You’d be seeing a like a $10 increase to the customer.”
While Murphy isn’t seeing the higher costs just yet because he has a stockpile that will last him a few months, he is preparing to have to pivot where he buys from.
Meanwhile, Anthony Allos, who owns ARO Connection and supplies packaging for businesses like PUFF Cannabis Co., says he is starting to see the higher costs but adds that he will not raise prices for his customers for at least another few months.
Read more at WXYZ