Trump administration taxes will hit the vaporizer industry, mainly located in China
According to a study published by Giornaliera della marijuana quotidiana, one of the sectors that should be the most successful will be the vaporizers. Other products likely to be affected by Trump administration taxes on China include cultural activities requiring lighting equipment. This concerns brands whose packaging is printed in China. But also, companies using steel and aluminum made in China, such as mining equipment.
Customs duties on Chinese imports
In May, Trump announced that the June 15, US Trade Representative Office (USTR) is expected to announce 25% customs duties about 50 billion of Chinese imports containing "technologies of industrial importance".
Then, the August 1er, the White House announced its intention to increase 10% a% 25 customs duties on Chinese imports.
This second list of items directly affected by the fee increase concerns vaping devices. Such as batteries, pods and pre-filled cartridges.
According to the import-export data tracking website Datamyne, the United States imported for 42 milioni of sprays and spare parts in China in 2017. As well as 800 000 dollars of similar products from Hong Kong.
"If I was in the vape industry or in the lighting or greenhouse industry ... Well, I'm afraid the costs are rising as a result of a trade war." Kevin Hogan, President and co-founder of Oregrown.
Hogan said vaping products are among the most important cannabis segments "by country". All Oregrown vaporizers come from China.
On the construction side, Hogan told MJ Business Daily that he was also concerned about the potential future cost of steel for greenhouses.
In states such as Oregon, much of the cannabis occurs outdoors. Then, the flower is sold in the market, to be turned into oil for vape cartridges. As a result, taxes will directly affect one of the largest segments of the state's cannabis industry.
The repercussions of these taxes are not immediately felt. But they will probably be as soon as they come into force in time ...