Israel took a firm stance against Canadian cannabis imports with the announcement of steep tariffs on the products.
Israel’s minister of economy and industry plans to impose tariffs as high as 165% on Canadian cannabis imports for the next four years, according to StratCann. The decision, which still requires approval from Israel’s Knesset Finance Committee and Finance Minister, follows allegations of “product dumping” into the Israeli medical cannabis market.
“Following the economic investigation I led, which found that cannabis is being imported from Canada at dumping prices causing significant damage to the local industry, and following the recommendation of the advisory committee that approved the findings of the investigation, the Minister of Economy decided to impose an anti-dumping duty on cannabis imports from Canada,” Dany Tal, director of import administration & commissioner of anti-dumping measures at Israel’s Ministry of Economy, said in a Thursday LinkedIn post.
The Israeli tariff decision followed a lengthy investigation that began with a preliminary report in July 2024 proposing tariffs from 63% to 369%, and a final report in November 2024 arguing for rates as high as 175%. However, Israel’s Ministry of Health opposed the tariffs option, with Ran Ridnik, head of economy, regulation and innovation at the ministry, previously expressing dismay at the proposed rates and the process used to determine them.
The final tariffs vary significantly by company:
- Decibel (12%)
- Village Farms (28%)
- Organigram (53%)
- Tilray (70%)
- 165% for most other Canadian imports.
Adam Coates, chief revenue officer at Decibel Cannabis, told StratCann their lower rate resulted from cooperation with authorities: “The lower potential duty rate reflects the cooperative approach we’ve taken and the confidence in our pricing practices.”
Other Canadian producers expressed frustration with the decision.
“We remain of the firm belief that the investigation’s methodology and interpretations were seriously flawed and that there is no credible basis for the tariffs placed on our company,” said Mark McKay, director of communications at Organigram. “The appropriate tariff amount for Organigram is zero.”
Mike Gorenstein, CEO of Cronos, which does extensive business in Israel, including local production, was more blunt.
“Inventing arbitrary formulas to make tariffs is bad for consumers and worse for patients,” he said. “I would have thought we just learned that in the last week.”
Israel has been one of a handful of significant export markets for Canadian cannabis companies, along with Australia, Germany, and to a lesser degree, the U.K.