Connecticut cannabis operator ensure tariff-driven cost increases

The Connecticut cannabis industry is faced with increasing operating costs due to new tariffs for the Chinese imports imposed by the administration of Trump. These tariffs, which now reach up to 125% for certain goods, have an impact on essential components and devices that are used for the cultivation of cannabis and retail.

Effects on infrastructure and equipment

David Salinas, co -owner of the Hi! People Cannabis Market reported in Derby that his team had to accelerate the purchase of essential infrastructure components such as lighting and HLK systems in order to avoid a forecast increase in costs by 35%. Salinas noticed: “We don't even have our building permit and had to buy our electrical lighting package last week before buying to avoid a cost increase of 35%.”

Packaging and Vape hardware challenges

Ben Zachs, owner of fine fat pharmacies, emphasized that packaging materials and vape cartridges are particularly affected, since many are manufactured in China. “The largest that we see very quickly is the packaging. A lot of paper and packaging is made in China and abroad,” said Zachs. He also emphasized the effects on VAPE cartridges and stated: “The other really big effects are vape cartridges, since the vast majority of steam cartridges contain components or parts in China.”

Operating adjustments and market effects

Rino Ferrarese, President of Affinity Grow, a local cultivator in Connecticut, mentioned that even large devices such as sealing seals and conveyor belts come from China. He expressed concerns about the increasing costs and the potential need to pass on these expenses to consumers. “There were questions of reliability, maintenance, etc., but now it is different,” said Ferrarese, referring to the improved quality of the devices made from Chinese.

Zachs also pointed out that some companies could incorporate these costs, but others may have to increase prices, which may affect competitiveness, especially in view of the already high cannabis prices from Connecticut compared to neighboring countries such as Massachusetts.