The Effect of Tariffs and the Big Beautiful Bill Act on Weed: Is This Something To Worry About?
Not to Mention, Trump’s Budget Proposal Rescinds Repeals Federal Protections For MMJ Patients
The recent actions of the US government have been nothing short of worrisome, especially for medical marijuana patients and advocates of the cannabis industry.
Needless to say, it feels like Trump has been breaking his promises to the cannabis industry, one after the other. Will the Big Beautiful BIll Act be anything different or throw the marijuana industry a lifeline? Well, the short answer is "no".
First, US President Donald Trump’s infamous trade war reflects the numerous economic battles fought between the United States and other nations, mostly China.
While the changes began taking place just in June 2025, the war actually began back in 2018. The tariffs, which are imposed by the United States, are placed on imported goods from China as well as other countries. Trump’s primary goal for increasing tariffs was to make US-made goods more competitive, but also placing added pressure to China, sending them a message to change the way they do business. After all, China is notorious for nasty business practices such as manufacturing counterfeit goods, stolen intellectual property, and giving US businesses no choice but to share technology with them.
Given how heavily reliant the US is on Chinese goods, almost all industries are affected by an increase of 20 up to 50% more, and the cannabis industry has not been spared.
Impact of Tariff Increases on the Cannabis Industry
The cannabis industry is affected in more ways than one, and the news isn’t pleasant:
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Higher Supply and Equipment Costs
American cannabis businesses and manufacturers depend heavily on Chinese parts and products, most especially when it comes to vapes, grow lights, hydroponic machines, glass jars, batteries, cartridges, and so much more. Because of the tariff increases, these basic parts are now much more expensive, so businesses and cultivators have no choice but to increase costs.
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Pricey Packaging
Child-proof packaging is a critical feature of many products in the cannabis industry. It ensures safety and compliance with regulations.
More importantly, consumers rely on child-proof packaging especially if they are parents or guardians, with children at home. Kids are extremely vulnerable to attractive packaging, particularly when it comes to cannabis edibles that look like popular kids’ snacks. That’s why child-resistant packaging plays such an important role: it helps prevent accidental cannabis ingestion by kids, which isn’t necessarily fatal but a preventable nuisance and danger.
But because of higher tariffs, businesses must content with more expensive child-proof packaging, smaller margins, and much longer wait times because of bureaucracy and red tape in customs.
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Investments Take a Hit
The cannabis industry is already high-risk as it is, and operates in a heavily regulated environment with seemingly never-ending hurdles. Trade tensions and tariffs are now escalating simultaneously, thanks to Trump, and we’re going to be seeing the ripple of his decisions throughout the investment sector.
The cannabis industry could use a break, seriously. But with all of this tension, many investors are going to get spooked because of all the unpredictability. Marijuana stocks, which are already volatile in nature, becomes much riskier today and will be more difficult to sell to private investors – and even mainstream investors.
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Disruptions In Cannabis Supply Chains
As mentioned earlier, many components and parts of cannabis products today are imported from other countries including, but not limited to, China. We also obtain parts from Germany, the Netherlands, and Israel among others. But because of higher tariffs, we can expect to see delays in cannabis technology and manufacturing supply chains because of delays, equipment upgrades, suppliers being unable to keep up with global competitors, and so much more.
Innovation will slow down, and it can pose a serious challenge for businesses who depend on efficient equipment.
How To Cope
The cannabis industry must adapt as quickly as possible, and there’s no better time than right now to start developing local supply chains. Sourcing domestically when possible, and diversifying suppliers in order to reduce a dependency on the Chinese market, can help save businesses and money.
Businesses can also pivot to invest in local manufacturing. In-house production especially for packaging, pre-rolls, and infused goods might be expensive up front, but in the long term it can save costs while reducing exposure to tariffs.
Of course, it would also help to forge strategic alliances with other cannabis companies. Creating bulk import groups would reduce the import costs associated with each unit.
MMJ Compromised In 2026 Fiscal Year Budget
To add insult to injury, the White House recently announced that they’ll be getting rid of a rider that provided protections for medical marijuana programs in the US. In a report by Marijuana Moment, US President Donald Trump did something both shocking and unthinkable at the same time – especially given all the chaos going on right now.
Trump particularly said that he wants to get rid of an old rider in the 2026 fiscal year budget, a rider that has prevented the Justice Department from interfering with state cannabis laws using their own funds. He also requested for the rider’s deletion during the first year of his presidency
Conclusion
The sharp tariff increases, as well as Trump’s budget proposal request, are serious disappointments for cannabis advocates as well as stakeholders. These will definitely hurt cannabis businesses without a doubt, which is leaving all of us to wonder: what happened to his promises to support cannabis legalization, rescheduling, and give cannabis industry a leg up for banking access?
Of course, the cannabis industry isn’t the target for the current trade war, but it will certainly make it difficult and expensive to cultivate, package, and export marijuana products especially in the United States. If these issues aren’t resolved soon, we may foresee delays in the global marijuana industry due to rising complexities, costs, and greater risk.
CANNABIS AND TRUMP 2.0, READ ON...
