As we confront the new U.S. tariffs on Canadian, Mexican, and Chinese imports, along with Canada’s response, it’s crucial to recognize the far-reaching implications for our industry and the millions of Americans it serves. These changes will undoubtedly reverberate through the legal cannabis sector, potentially undermining much of the progress we’ve made towards a robust, equitable market.
Key impacts:
? 25% tariffs on Canada/Mexico imports and 20% on Chinese goods will increase costs for equipment, packaging, and supplies
? Supply chain disruptions as businesses seek alternative suppliers
? Heightened competitive pressure from the illicit market
? Increased risk of market consolidation, squeezing out smaller operators
? Disproportionate burden to BIPOC entrepreneurs already facing punitively high cannabis taxes and capital access issues
Legal considerations:
? Review tax strategies and supply chains with cannabis-experienced professionals
? Maintain strict regulatory compliance to avoid additional scrutiny
? Protect intellectual property through state-level and alternative strategies
? Maintain engagement with local and state leadership, helping to shape state law and holding officials accountable for upholding good policies
? Consider pivots and exit strategies if necessary, ensuring the best possible terms
Many of the new federal policies and global relationships will undoubtedly impact our already challenging industry. Like all businesses these burdens will likely be passed onto consumers making the fragile cannabis industry even more difficult for all cannabis businesses, whether plant-touching or ancillary. Cannabis attorneys and advocates, must remain committed to supporting our communities through these turbulent times.
As the Executive Director of the National Association of Black Cannabis Lawyers (NABCL), I will continue to collaborate with colleagues, policy makers, business owners and advocates to help members navigate the ever changing landscape of our industry.
#CannabisEquity #LegalCannabis #NABCL