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High Tariffs Hurting Cannabis Sector, With Little Relief in Sight

Published
4 months agoon

As President Donald Trump rolls out more reciprocal tariffs amid an already scrutinized economic environment brimming with earlier tariffs imposed on both Canadian and Chinese imports, the cannabis industry is anxiously watching its costs rise. But some companies have been proactive in trying to stem the bleeding.
On April 2 at the White House Rose Garden, Trump announced 34% in reciprocal tariffs on China, one of the major countries supplying the cannabis industry with raw materials. This additional rate brings China’s total tariffs figure to 54%.
He also plans to establish a universal baseline tariff of 10% that will apply to all countries, in addition to the figures already announced.
On April 4, China hit back, announcing it would impose a 34% tariff on U.S. product imports beginning April 10.
Kevin Kuethe, chief cultivation and production officer at Lume Cannabis in Michigan, has seen how the trade war has stalled the cannabis economy, mainly due to tariffs imposed on Chinese imports. “We’re starting to face a 2 or 3 cent increase per vape unit we sell to consumers, and we go through hundreds of thousands a month, so it can add up,” he says.
Thankfully, Lume’s supply chain team began working to foresee these price increases back in September, even though a new administration had yet to be announced. “We predicted that a new presidency would lead to some trade issues, so we bought as many units as possible before the tariffs came into effect,” Kuethe says.
He adds how Michigan’s competitive cannabis market doesn’t afford Lume the flexibility to increase prices for consumers, and he doesn’t estimate any price bump in the near future rippling down to end users. Michigan’s average adult-use flower price at retail dipped to an all-time low of $65.21 per ounce in February, according to the state’s Cannabis Regulatory Agency.
On the cultivation side, a major expense has been nutrient salts, which Kuethe says many of his competitors source from China. But for years, Lume has bought these salts from Israel, which now faces a 17% tariff rate, according to Trump’s April 2 announcements. Still, it’s far less than the tariff increase imposed on China.
Courtesy of Jaunty
There has been some buzz around vape manufacturers sourcing materials in countries outside of China, but Guarino says that isn’t realistic. “Right now, there isn’t a top supplier setting up a factory headquarters in, say, Indonesia or Malaysia, but maybe that’s a longer-term plan,” he says.
But it appears importing from those countries will be a headache, too: On April 2, Trump slapped Indonesia with reciprocal tariffs at a rate of 32% and Malaysia with a rate of 24%.
Kuethe echoes Guarino by adding how the cannabis sector will have to transition to new prices if the trade war stretches into 2027, so much so they’ll have to shift their supply chain “from all angles and find different manufacturers in different countries who offer lowest costs and maintain the high quality of what’s needed. Searching for those manufacturers is already happening now.”
In Unprecedented Moment, ‘Cannabis Industry Has to Be in Lockstep’
In the meantime, inputs slapped with tariffs will force a company’s hand. Guarino says his company is absorbing the sticker shock, but he doesn’t see that kind of approach extending much longer. “At some point, that increase is going to filter down to the consumer if the cost approaches around $2 per unit as opposed to the 80 cents we are paying now,” he says.
According to Greentank Technologies, which supplies Jaunty with its hardware, the level playing field all vape companies are facing now eases the burden somewhat, as practically every vape manufacturer sources materials from China. However, as a Canadian company, Chief Revenue Officer Peter Machalek has seen the “Buy Canada” approach bring more clients to Greentank.
“Canadian brands are coming to us because of that patriotism and because they know they’ll get a full-service operation with us,” Machalek says.
He thinks it’s unrealistic for Trump and his supporters to believe that a made-in-America message will emerge from these tariff announcements. “There’s only one direction the prices will go if vapes are made in America, and that’s up,” Machalek says. “When consumers are used to paying X, they sure aren’t going to pay twice that amount.”
Kuethe notes how a key change in supply chain sourcing must be unified across the board. “The cannabis industry has to be in lockstep, sourcing a new input from somewhere else where the trade war isn’t an issue, or the rate is lower, and you can’t just have a couple of companies do it,” he says. “The only time businesses really move together is when they’re forced to, and that looks like it’s happening now.”
One more nuance of this trade war is how new builds will be reconsidered. Kuethe says that while Lume isn’t interested in constructing any new grows or plants, he wouldn’t be surprised to see the sector move away from adding more buildings to their operations. “Most of those construction materials come from Canada, so I doubt anyone would want to pay that high price right now,” he says.
National Pride Goes a Long Way to Help the Bottom Line
For some ancillary businesses in the cannabis sector, the “Buy American” mantra has been stabilizing their bottom line. Ron Basak-Smith, CEO of Sana Packaging, says his company’s sustainable solutions and domestic manufacturing base have allowed it to lower costs by 15% and stay competitive amid the trade war.
Photo by Katie Koczera | Sana Packaging
“For us, it’s the status quo right now since less than 1% of our raw materials are coming from China,” he says.
For cannabis businesses stuck in the muck of this trade war, the future is hazy.
“The biggest concern is how unpredictable this administration is, and what they’re doing with tariffs doesn’t seem calculated in any way,” Guarino says. “It’s already challenging enough to run a cannabis business in the U.S., with tight margins and all the regulation. We need a stable business environment, and we’re not getting it.”

Author: mscannabiz.com
MScannaBIZ for all you Mississippi Cannabis News and Information.
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Regulators Ready to Enforce Cannabis Laws on Hemp THC Retailers in Maryland

Published
9 minutes agoon
September 15, 2025
Cannabis regulators in Maryland are ready to bring the force of the law against businesses selling intoxicating products with hemp derivatives after an appellate court ruled in favor of the state last week.
The Maryland Alcohol, Tobacco and Cannabis Commission (ATCC) issued a warning on Sept. 12 that was directed at businesses selling intoxicating THC products without a cannabis license, putting them on notice of the appellate court’s order.
In particular, the Appellate Court of Maryland ruled on Sept. 9 that the state’s law prohibiting businesses from selling hemp-derived products without a license is constitutional, reversing the Washington County Circuit Court’s decision to grant a preliminary injunction from October 2023.
The injunction protected hemp retailers, producers, farmers and consumers, who had challenged the state’s licensing requirement under Maryland’s Cannabis Reform Act (CRA), legislation enacted in July 2023 to regulate an adult-use cannabis market. The injunction had prevented the ATCC from enforcing the cannabis law against businesses selling hemp-derived THC products without a cannabis license for nearly two years.
“All retail establishments engaged in the sale of intoxicating THC, especially those in business prior to July 1, 2023, are on notice that the appellate court’s order, when effective, will terminate the limited protection afforded to them by the preliminary injunction issued by the Washington County Circuit Court,” according to an ATCC notice, warning businesses of its forthcoming enforcement efforts.
“Moving forward, any person or business that engages in the distribution or sale of an intoxicating THC product without the required license issued to them by the Maryland Cannabis Administration (MCA) is subject to criminal prosecution under Maryland law,” according to the notice.
In addition to the ATCC’s restored enforcement powers, the appellate court ruled that intoxicating products containing synthetic hemp derivatives created in a chemical process, such as delta-8 and delta-10 THC, “are now and have always been illegal in Maryland.”
The ATCC provided a list of criminal offenses and violations for the distribution or sale of an intoxicating THC product without a license by the MCA:
- Packaging, Labeling and Potency Violations: Selling a product that violates THC product packaging, labeling and potency standards – ABCA § 36-1104(b)
- False or Illegal THC Advertising: Advertising a product as containing an amount of THC that violates AB § 36-1102 – ABCA § 36-1104(c)(1)
- Unlicensed Sales Above THC Limits: Selling a product that contains more than 0.5 milligrams of THC per serving or 2.5 milligrams of THC per package without a license from the MCA – ABCA § 36-1102(b)(1)
- Synthetic Intoxicating THC Products: Selling or distributing a cannabinoid product that is not derived from naturally occurring biologically active chemical constituents (aka “synthetic intoxicating THC products”) – ABCA § 36-1102(c)
According to the ATCC, the commission has the authority to seize products on sight that violate the Alcoholic Beverages and Cannabis Articles (ABCA) listed above.
Convictions related to the ABCA could result in $5,000 fines for each offense, including up to $10,000 for offenses of selling or distributing synthetic THC products. If convicted, the seized products can be destroyed, according to the ATCC.
“In response to the appellate court’s decision, the ATCC is prepared to expand its state-wide investigation and enforcement actions against any persons and businesses who distribute or sell intoxicating THC products in violation of Maryland law,” according to the notice. “The ATCC continues to be committed to ensuring the public health and safety of Marylanders through the application and enforcement of Maryland’s cannabis laws.”

Author: mscannabiz.com
MScannaBIZ for all you Mississippi Cannabis News and Information.
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Meet the World’s First Cannabis Rugby Team: Crewmen 7’s Tackle Stigma Head-On

Published
1 hour agoon
September 15, 2025
Picture this: a rugby pitch, sweat in the air, bodies colliding with that mix of grace and chaos only rugby can deliver. On the sideline, instead of the usual beer logos and corporate banners, you see RAW Rolling Papers. Instead of Budweiser, there’s Beneleaves. Instead of a cooler stacked with light beer, there are capsules packed with CBD, CBG, and electrolytes.
Welcome to the world of Crewmen Rugby 7’s, the first cannabis-backed rugby squad in the United States. Born from a half-serious Instagram experiment and fueled by plant-based sponsorships, the Crewmen are rewriting what sports sponsorship looks like, and clearly enjoying the ride.

From a DM to a Movement
When Nigel Bowman launched the Crewmen, there was no big plan. No investors. No strategy deck. Just a phone, an idea, and an Instagram post.
“Crewmen Rugby 7’s is the first Cannabis Advocacy athletic organization in the United States. We strive to break the stigma between high-performance athletics and cannabis culture. I literally began this team on Instagram just to generate interest from local players for a small tournament. It caught wildfire and took off,” he told High Times.

That wildfire turned into a traveling squad of athletes who now compete in sevens tournaments, welcome players from around the world, and run onto the pitch wearing cannabis-branded kits.
RAW on the Jersey, Respect on the Pitch
If you know cannabis culture, you know RAW. Seeing the logo stamped on a rugby jersey is both a surprise and a statement. It says the old rules are changing.
“Crewmen Rugby is sponsored by amazing brands such as RAW Rolling Papers. Rugby is known for its hard game play and camaraderie,” Bowman said. “We wanted to change the dynamic of Alcohol Sponsorship to Cannabis Sponsorship in the aspect of promoting recovery and wellness. Our amazing sponsors help support the team with covering necessary tour expenses like housing, flights and uniforms. I keep great rapport with sponsors that have helped build us up.”

That partnership didn’t happen overnight. “All of our sponsorships were derived from the Instagram platform and direct messages to the companies. It took about a year and a half to gain sponsorship from RAW. It was well worth the wait to represent such an iconic brand within cannabis culture!”
The takeaway is clear: rugby doesn’t need beer logos to thrive. Cannabis brands can carry the culture too.
Recovery Is Part of the Game
The Crewmen aren’t just about uniforms. They’re leaning into recovery, showing that cannabinoids can help athletes keep going after the toughest hits.
“We have a line of custom-formulated hemp products from our vertical processor, Reverb Wellness, under Crewmen Brands. Some of these products include a topical 3:1 CBD to THC, rosin disposable vapes, recovery capsules with CBD:CBG:Electrolytes and pre-rolls. We also have a line of .510 thread cartridges processed by Beneleaves Limited for Medical and Recreational use in dispensaries around Ohio.”
For Bowman, the products double as proof that cannabis has a place in sports medicine and athlete care.
Stigma, Smashes, and Selling Jerseys
Rugby fields are usually a parade of beer and liquor logos. Cannabis logos, though? They still make people stop and stare. That’s exactly the point.
“Sports and athletics have stigmatized the use of cannabis for as long as I can remember. I started the Crewmen with the idea of putting well-known Cannabis brands in the face of the Rugby community. Athletes use cannabis or CBD to recover from intense workouts/games and I’d like to normalize it within the sports community.”
The reaction has been instant. “Being able to host international athletes is a true privilege. When we wear our uniforms to large-scale tournaments, people always want to buy one. I believe that it’s because they have never seen it before, as alcohol sponsors flood our Rugby Community. We just wanted to separate ourselves from the norm. We still maintain the high-performance aspect of the sport. While wearing the brands that have made a major impact on the Cannabis Community.”
Eyes on Rugbytown
Every team has a dream stage. For the Crewmen, it’s Rugbytown USA in Glendale, Colorado, one of the most prestigious sevens tournaments in the country.
“What would be next for Crewmen Rugby 7’s is ideally to make it to Rugbytown USA. That is the largest-streamed International 7’s competition in the United States. I’m hopeful that 2026 is our year. In previous years, Native Roots dispensary sponsored the Tournament based in Glendale, Colorado. So the rugby community isn’t unfamiliar with cannabis sponsors. But it’s more hush-hush than the narrative that we push with Crewmen Rugby 7’s.”
If a Team Were a Strain
Ask Bowman what strain captures his team, and he doesn’t miss a beat.

“If Crewmen had a signature strain, it would probably be in the Kush lineage. Kush has a wide array of crosses and I believe we showcase individuality while maintaining a common goal. I think we highlight the products under Crewmen Brands by Reverb Wellness very well. They have started to gain popularity nationwide. Even getting our topical to the Rugby Tens Championship in California and Rugbytown for international athletes to use for recovery. Our team is about educating people and players who are not informed about how Cannabis can improve overall health and quality of recovery.”
Shock, Curiosity, Amazement
Face the Crewmen on the field and it’s not just the rugby that gets people talking.
“The reaction that first comes across from our opponents and other spectators is amazement. It’s something a lot of players and staff haven’t seen before we brought Cannabis Sponsors to the table. Now more and more teams are diversifying their sponsors. I’d like to think that cannabis sponsorship will be a normal thing for all athletic associations within the coming years.”
A Gentleman’s Game Played by Hooligans
Bowman says it best: “Rugby is a very high-impact sport. A Gentleman’s Game Played By Hooligans, if you will. Cannabis Culture adds to the team’s identity by spreading education about the plant we are so passionate about. If it weren’t for a wacky idea to start a cannabis sports team one day when I was budtending, we wouldn’t exist. Chase your dream no matter how wacky people may think it is. There’s always at least one person willing to back your cause.”
What started as a shot in the dark is now a traveling crew with a mission. The Crewmen keep playing, keep teaching, and keep proving that the best culture is the one lived out loud.
Photos courtesy of Crewmen Rugby 7.

Author: mscannabiz.com
MScannaBIZ for all you Mississippi Cannabis News and Information.
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Texas Supreme Court Refuses To Take Up Marijuana Case Challenging State’s Rejection Of Local Decriminalization Law

Published
2 hours agoon
September 15, 2025
The Texas Supreme Court has declined to take up an appeal of a case concerning the state’s overturning of a local marijuana decriminalization law that was approved by voters in the city of San Marcus.
About five months after the state Fifteenth Court of Appeals rejected a lower court ruling that denied a temporary injunction to prevent the law from being enforced, the state Supreme Court on Friday sidestepped the case.
“The Texas Supreme Court refused to hear this case, siding with Greg Abbott’s handpicked judges and telling 82 percent of San Marcos voters their voices do not matter,” Catina Voellinger, executive director of Ground Game Texas, which was behind this and multiple other local reform measures, said.
“This is not just about marijuana. It is about whether working Texans get to make our own decisions, like the Texas Constitution says we should,” Voellinger said.
The lower court’s ruling—and this subsequent Supreme Court inaction—marks a setback for activists who’ve led the charge to enact local marijuana policy changes through the ballot, many of which have been contested by Texas Attorney General Ken Paxton (R).
“Texas has the biggest working-class population in the country, with most of us making $15 an hour or less. Meanwhile, millionaire politicians like Greg Abbott and Ken Paxton twist the courts to protect themselves and their rich donors,” Voellinger said. “They think we do not see what is happening, but we do. We know exactly how hard they have made it to survive here. They spend all their time trying to block us because they know the truth: the power is with us. And we are building a movement that cannot be stopped.”
Eric Martinez, executive director of Mano Amiga Action that partnered with Ground Game for the San Marcos initiative, said the high court’s decision represents a “direct attack on local democracy and on the working people of San Marcos—Black, Brown, white, immigrant, and poor—who came together to demand a better future.”
“The Texas Supreme Court had the opportunity to stand up for the will of voters and chose not to. Our communities passed decriminalization because we’re tired of people being jailed over a small amount of weed while real public safety needs go ignored. The courts may be stacked, but we outnumber them. We will not let the rich and powerful decide everything for us. This fight belongs to all of us: the movement will only grow stronger in numbers from here.”
Under the appellate court’s ruling, the judiciary determined that a trial court upholding the city law “abused its discretion” when it denied certain requests from the state asserting a constitutional right to preempt the city government. And specifically, it said state statute “prohibits local governments from putting up any barrier to the full enforcement of drug-related laws.”
“Texas law gives local governments and law enforcement officers a panoply of tools—such as the authority to issue citations and arrests—to enforce drug laws. Section 370.003 prohibits the City of San Marcos from making a policy that takes any of those tools off the table,” it said.
“No magic words were necessary for the Legislature to preempt the Ordinance with unmistakable clarity,” the court continued. “A plain and fair reading of the Ordinance presents irreconcilable inconsistency with Section 370.003.”
San Marcos was one of five cities during the November 2022 election where voters approved similar decriminalization initiatives after advocates with Ground Game Texas and Mano Amiga Action secured ballot placement.
The ordinance made it so police could not issue citations or make arrests for class A and B misdemeanor marijuana possession offenses, with limited exceptions such as if the violation connected to an investigation into a felony-level narcotics case.
The measure also said police couldn’t issue citations for residue or paraphernalia in lieu of a possession charge. And they couldn’t use the odor of cannabis alone as probable cause for a search or seizure.
Despite the state’s resistance and the latest development in San Marcos, advocates have seen several courts rule in their favor amid the legal challenges.
For example, in February, a Texas judge has ruled that a cannabis decriminalization law approved by Dallas voters last year can continue to be implemented—denying a request from the state attorney general that sought to temporarily block the reform as a lawsuit proceeds.
This doesn’t mean the lawsuit from Paxton is dead altogether. But, at least for the time being, the judge determined that the decriminalization policy can continue as the litigation unfolds.
Dallas Police Department had previously instructed officers to stop arresting or citing people for possession of up to four ounces of marijuana, in accordance with the voter-approved ballot initiative.
Gov. Greg Abbott (R) has lashed out against the municipal cannabis reform efforts.
“Local communities such as towns, cities and counties, they don’t have the authority to override state law,” the governor said last May “If they want to see a different law passed, they need to work with their legislators. Let’s legislate to work to make sure that the state, as a state, will pass some of the law.”
He said it would lead to “chaos” and create an “unworkable system” for voters in individual cities to be “picking and choosing” the laws they want abide by under state statute.
Abbott has previously said that he doesn’t believe people should be in jail over marijuana possession—although he mistakenly suggested at the time that Texas had already enacted a decriminalization policy to that end.
In 2023, Ground Game released a report that looked at the impacts of the marijuana reform laws. It found that the measures will keep hundreds of people out of jail, even as they have led to blowback from law enforcement in some cities. The initiatives have also driven voter turnout by being on the ballot, the report said.
Another cannabis decriminalization measure that went before voters in San Antonio that year was overwhelmingly defeated, but that proposal also included unrelated provisions to prevent enforcement of abortion restrictions.
Meanwhile in Texas, there’s been a contentious debate in the legislature over Texas hemp policy, with some pushing for an outright ban on any cannabis products containing THC. But those efforts fell short during the regular and special sessions this year.
The governor, in response, signed an executive order last week to institute age and labeling requirements for hemp products.
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Separately, Texas officials have taken another step toward implementing a law to significantly expand the state’s medical marijuana program—proposing rules to to let physicians recommend new qualifying conditions for cannabis and to create standards for allowable inhalation devices in line with legislation enacted by lawmakers and the governor earlier this year.
Last month, the Department of Public Safety (DPS) separately posted a set of additional rules in the Register to increase the number of licensed medical marijuana dispensaries in Texas under the recently enacted legislation.
DPS will ultimately be issuing 12 new licenses for dispensaries across the state. Currently there are only three. The additional licensees will go through a competitive process, with officials prioritizing Texas’s public health regions to optimize access.
The first round of licenses will be awarded to nine of 139 applicants who submitted their forms during an earlier application window in 2023. DPS will select those nine licensees on December 1. The 2023 applicants that didn’t receive a license, as well as any new prospective licensees, will have another shot at getting their license during a second round where awardees will be announced on April 1, 2026.
The 2023 group can still revise their applications up until September 15. New would-be dispensary owners have until that date to submit their applications as well.
Image element courtesy of AnonMoos.

Author: mscannabiz.com
MScannaBIZ for all you Mississippi Cannabis News and Information.

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