By Brendan O’Connor
The cannabis industry is currently facing a brewing storm of rising tariffs, which are significantly increasing operational costs across the board. Currently, Chinese imports are subjected to a 30% tariff, but this is only locked in for 90 days. And with much of the US cannabis industry relying on imports from China for essential equipment, from vaporizers to packaging and cartridges, they’re seeing a direct financial hit.
Tariffs don’t just hit the bottom line; they ripple through the entire supply chain. Shipping costs climb because products have to take longer, less efficient routes. Customs delays and the scramble to find alternate suppliers create bottlenecks that can halt production.
Crucially, as costs pile up, the temptation to cut corners grows. This can inadvertently compromise product quality, safety, and compliance standards, leading to risks far more detrimental than a price increase.
Are Tariffs Putting Product Safety at Risk?
The rising cost of doing business, exacerbated by tariffs, presents a dangerous cost-cutting temptation for cannabis companies. Under pressure, some may be inclined to seek cheaper, potentially less reputable, suppliers or materials.
The subsequent fallout can compromise quality and compliance. For instance, inferior or even contaminated materials could enter the supply chain, introducing pesticides, heavy metals, or mold that threaten consumer health. In fact, over the last seven years, at least 220 cannabis product recalls were reported across 20 state agencies. Nearly 28% of these were due to microbial contamination—yeast, mold, or Aspergillus, which can make immunocompromised consumers seriously ill. And with budgets dwindling, this number could only get worse.
Furthermore, when companies start shaving costs on packaging, it’s not just the look of the product that suffers. Cheaper materials can let potency fade faster, shorten shelf life, or affect their child resistance, again, creating compliance and safety issues. The bigger …
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Author: High Times Contributors / High Times
