Weed companies say Trump’s trade war will drive up the cost of getting high in Michigan

President Donald Trump’s tariffs are set to increase production costs for cannabis companies across the country. And Michiganders could end up paying the price.

MICHIGAN—If your favorite vape cart suddenly costs a few bucks more than usual, you’re not imagining things. And no, it’s probably not because your plug suddenly decided to get greedy.

Something’s messing with Michigan’s cannabis supply chain, and that’s global trade chaos.

Since returning to office, President Donald Trump has pushed forward a volatile string of new tariffs on imports from China and dozens of other countries worldwide. And industry leaders say that’s jacking up costs on some of the raw materials used to create weed products in Michigan.

From custom jars and pre-roll tubes to vape batteries and grow lights, the materials used in the state’s weed industry are heavily sourced from overseas. Some businesses have stocked up early or absorbed the cost increases for themselves. But the math is starting to shift—and consumers may be next in line.

Supply Chain Squeeze

Michigan law dictates that all weed cultivated for either the state’s recreational or medical markets be harvested within the state of Michigan. But much of what surrounds the state’s cannabis industry—from seed to sale—still relies heavily on international trade.

That’s especially true for vape cartridges, glass joint tips, and branded packaging materials—most of which reportedly comes from China. Trump’s latest wave of tariffs slapped a 145% tax on those goods, which has since been dialed back to 30% in a new truce with China.

But the damage might already be done.

Travis Murphy, founder of Michigan-based cannabis processor North Coast, told WXYZ Detroit that his prices to import certain vape parts are already climbing—as much as $4 per vape pen. And that will soon translate to a $10 price increase for customers at the dispensary, he said.

North Coast has a large stockpile of supplies that will allow it to keep its prices steady for at least the next few months. Another cannabis supplier, ARO Connection, also told WXYZ that they’ve been covering the extra costs for themselves without raising prices for customers.

But not all companies will be able to hold the line for long—especially if and when Trump’s 90-day truce with China comes to an end, and the tariffs climb back up to 145% or higher.

“They’re definitely going to see cost and price go up,” Anthony Allos, who owns ARO Connection and supplies packaging for businesses like PUFF Cannabis, told WXYZ.

Michigan Impact

Trump’s tariffs have been launched, lifted, reimposed, paused, and rebranded more times than a dispensary changes its weekly deals. One week, it’s 145% on China. Then, the next week, it’s 10% across the board. Then, there’s a new 90-day pause. Then, there’s another round of retaliation. The unpredictability has left cannabis supply chains—and other businesses across a wide range of industries—in a constant state of whiplash.

Tony Reyes, CEO of the multi-state cannabis packaging company CannaCarton, said many of his colleagues in the industry are scrambling—especially those who rely on importing pre-roll tubes, jars, and other materials from China. Some have called him in a panic in recent weeks, desperately trying to price out American alternatives, just to fulfill their orders.

“I don’t know how some of these guys are going to sustain it,” Reyes told The MichiGanja Report. “These people are barely squeaking by. Now, they’re facing significant cost increases, and I feel bad. They’re not trying to buy from China to cut corners. They’re just trying to survive.”

Kevin Kuethe, a top executive at Lume Cannabis, told Cannabis Business Times that his company stockpiled vape parts in anticipation of trade chaos under Trump. Even a two-cent increase per vape cart adds up when you’re moving hundreds of thousands of them a month.

But Trump’s trade war with China and other countries isn’t limited to vape hardware. Costs are also reportedly rising on everything from nutrient salts to grow lights to child-proof containers.

Kuethe said he also expects to see the Trump administration’s new tariffs on building materials from Canada delaying and halting the construction of new grow facilities across the state.

“The cannabis industry has to be in lockstep, sourcing a new input from somewhere else where the trade war isn’t an issue,” Kuethe told Cannabis Business Times. “The only time businesses really move together is when they’re forced to, and that looks like it’s happening now.”

But for smaller cannabis companies without the foresight—or the financial wiggle room—Trump’s trade war has turned the once-lucrative industry into a high-stakes gamble.

“Tariffs are no longer a geopolitical footnote. For our industry, they’re a direct threat to profitability and scalability,” Arnaud Dumas de Rauly, founder of MayThe5th and chair of VapeSafer, an industry trade group, told MJBizDaily. “The cannabis industry is dangerously exposed to global supply-chain risks—many of which just got a lot more expensive overnight.”

The Bottom Line

You don’t need to follow foreign policy to feel the impact of Trump’s trade policies.

If your favorite gummies, carts, or cones start creeping up in price—or vanishing from shelves completely—it’s not because the market’s crashing. It’s because the cost to make them is rising, and dispensaries are trying to stay afloat in one of the most competitive markets in the country.

Even a small, $1.50 uptick in the cost of a disposable vape pen can ripple downstream to your receipt. And keep in mind: Because Michigan taxes weed based on its retail price, those price hikes will translate to slightly higher taxes, too. It’s a double whammy for everyday stoners.

Plus, if prices jump too far, too fast, the real danger is that customers could turn back to the illicit market—where there’s no quality control, safety standards, or tax revenue for Michigan.

Cannabis companies are doing everything they can to ride out the storm. But when trade policy keeps shifting faster than a flash sale on 420, even the best-prepared operators are left guessing. And for consumers, that uncertainty may soon show up on the price tag.

READ MORE: 5 quick hits of cannabis news from across Michigan

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