The rippling effects of the trade war have been felt for some in the U.S. cannabis market
For more than a year, President Trump has been waging an intense trade war with China, culminating in both sides increasing their tariffs on imported goods.With 25 percent tariffs levied on $200 billion of Chinese goods, Trump is “still threatening to slap duties on another $325 billion of goods,”. The fallout has been considerable. According to the business news outlet, more than 50 U.S. companies are reportedly pulling their production operations from China.
The rippling effects of the trade war have also been felt for some in the U.S. cannabis market. Julia Jacobson, CEO of Oakland, California-based, a sustainable cannabis company, said that because most of her company’s packaging is produced in China, they are being hit with 25 percent taxes on their orders. “Our custom tins for our pre-roll pack were finished, but not shipped when the tariffs first kicked in,” she related.
The situation has become untenable for Jacobson. “While many people think the cannabis industry is striking it rich, with the current regulations and supply chain we are all operating on extremely thin and often negative margins, so any increase in our costs of goods hurts,” she explained., a cannabis-focused Portland, Oregon-based firm, said he has not heard clients complain about the trade war’s effect on their businesses.
For companies like Aster Farms that are feeling the effects of the tariffs, little can be done. Citing the proverbial banking problem faced by many marijuana businesses, an obstacle rooted in the federal illegality of the substance, Salzhauer sounded an understandably pessimistic note.
Brasil Últimas Notícias, Brasil Manchetes
Similar News:Você também pode ler notícias semelhantes a esta que coletamos de outras fontes de notícias.
A Fed rate cut could give Trump another weapon in the trade war with ChinaTrump wants a weaker dollar that would make China have to dig even deeper to match lower U.S. prices, writes Jake Novak.
Consulte Mais informação »
Trump targets China in call for World Trade Organization to reform 'developing' country statusUS President Donald Trump put pressure on the World Trade Organization on Friday to change how it designates what are developing countries, singling out China and other countries for unfairly getting preferential treatment.
Consulte Mais informação »
U.S. firms keen on China's import expo despite trade frictions: China officialU.S. firms are keen to participate in China's import expo despite trade fri...
Consulte Mais informação »
U.S. to pay farmers up to $16 billion for trade war losses, South to benefitThe U.S. government will pay American farmers hurt by the trade war with China b...
Consulte Mais informação »
Companies weigh impact of China and trade, and it's not all badCompanies report varying impacts from China amid trade squabbles.
Consulte Mais informação »