The cannabis industry in the United States is finding creative ways to adapt to trade pressures sparked by tariffs introduced during the Trump administration. Although the tariffs were aimed at boosting domestic manufacturing, they’ve created unexpected hurdles for cannabis companies that depend on international suppliers for key components like packaging and hardware.
Instead of slowing down, many cannabis businesses are meeting these challenges head-on by reshaping their supply chains, shifting production locations, and finding new ways to cut costs.
Moving Production Closer to Home
One standout example is Custom Cones USA, a major supplier of pre-roll packaging. The company recently moved some of its manufacturing operations from overseas to the U.S. Chief Operating Officer Fredrik Rading said the shift helps cut shipping times and matches production costs with those in China, ultimately improving efficiency.
While the U.S. still lacks the infrastructure for large-scale manufacturing of some cannabis products, such as pre-roll cones, companies are eyeing new domestic and regional production hubs to reduce reliance on countries like Indonesia and India.
Supply Chain Overhauls
To deal with the increased costs caused by tariffs, many cannabis businesses are rethinking how they source and distribute products. Ispire Technology, a Los Angeles-based vape company, is expanding manufacturing in Malaysia to control costs and reduce their environmental footprint by consolidating production.
Meanwhile, logistics companies like Talaria, based in Philadelphia, are using technology and domestic partnerships to stay competitive. By investing in advanced routing software and diversifying their suppliers, they’re working to maintain service levels and avoid major price hikes for customers.
Global Strategies and International Trade
International partnerships remain key, even as tariffs complicate the global landscape. Custom Cones USA, for instance, plans to ship products directly from Indonesian manufacturers to Canada, where it’s opening a distribution center. This approach helps the company sidestep some of the current friction in U.S.-Canada trade relations.
Other companies, like ZZZ’s Collective, continue to work with international suppliers despite rising costs. By absorbing some of those expenses, they aim to keep prices stable and maintain customer loyalty — even as global sourcing becomes more expensive.
Will Consumers Feel the Pinch?
While cannabis companies are doing their best to shield consumers from cost increases, some price adjustments may be inevitable, especially if the broader economy weakens. Brands like ZZZ’s Collective and Gelato Canna Co. admit that while they’ve managed to absorb surcharges so far, rising costs could eventually trickle down to customers.
Still, these companies are betting on more domestic sourcing to protect their business long-term and to avoid pushing consumers back toward unregulated, black-market alternatives.
The Road Ahead
Despite the ongoing trade uncertainties, cannabis businesses are showing resilience and forward-thinking strategies. From expanding domestic production to adopting new technologies, the industry is evolving rapidly to stay ahead of global economic shifts.
Looking forward, cannabis companies are expected to invest more in alternative materials, local partnerships, and tech-driven logistics — all aimed at making the industry more self-sufficient and sustainable.
As the global trade environment continues to shift post-pandemic, cannabis businesses that stay adaptable and innovative will be best positioned to thrive in the years ahead.
Rita Ferreira
Rita is a seasoned writer with over five years of experience, having worked with globally renowned platforms, including Forbes and Miister CBD. Her deep knowledge of hemp-related businesses and passion for delivering accurate and concise information distinguish her in the industry. Rita's contributions empower individuals and companies to navigate the complexities of the cannabis world, and her work remains a valuable resource for those seeking a deeper understanding of its potential.
