Will U.S. Tariffs Impact Canadian Cannabis Prices?
You might have seen the news about U.S. tariffs and wondered—will this impact cannabis prices here in Canada?
We have been curious too, so we looked into it. While we are not trade experts, we have analyzed the situation and have a few thoughts.
Let us know what you think!
Our Thoughts
Will US tariffs impact cannabis prices?
The short answer: not directly.
The longer answer: Indirect costs and broader economic impacts related to US tariffs and trade policy could impact the price of cannabis production and sales - particularly if the tariffs are in place for an extended time.
No Cross-Border Trade = No Direct Impact to Cannabis
Cannabis can’t legally cross the U.S.-Canada border. Since American federal law still considers cannabis illegal, there’s no import/export of recreational cannabis between our two countries. That means U.S. tariffs won’t directly affect the price of the cannabis products you buy here in Canada.
Where We Might See Some Changes
Even though cannabis itself isn’t traded between Canada and the U.S., some things connected to the industry are. Here’s where we might see some indirect impacts:
Cost of Production and Distribution– If tariffs increase the cost of things like vape hardware, edible ingredients, transport vehicles, growing supplies or packaging materials, those extra costs could impact domestic cannabis production and sales.
Economic Ripples – Tariffs could negatively impact the Canadian economy, causing price increases on everyday goods. If that happens, people might have less disposable income for cannabis. particularly if the tariffs are in place for an extended time.
Market Impacts – The cannabis industry relies on investors and in some cases is publicly traded. If tariffs cause economic uncertainty, investment may slow.
Consumer Confidence & Spending
Tariffs don’t just impact the cost of goods—they can also shake up consumer confidence. If prices start rising on essentials like groceries, gas, or rent, consumers might cut back on what they see as non-essential purchases, including cannabis. This could mean more customers choosing budget-friendly options or waiting longer between purchases.
On the flip side, economic uncertainty sometimes leads people to small indulgences that bring comfort—like a favourite pre-roll or edible. We’ll be keeping an eye on how consumer habits shift in response to these changes.
The Bottom Line
For now, we don’t expect any big changes in cannabis pricing because of U.S. tariffs. But if you start noticing small price shifts, it might not be the cannabis itself—it could be things like packaging, accessories, or other behind-the-scenes costs.
At Royal Cannabis Haus, we’re talking to our sales reps, keeping an eye on industry trends and monitoring prices to make sure we continue offering great products at fair prices.
No matter what happens with international trade, we’re here to serve our community with quality cannabis and good vibes.
Have questions? Stop by the shop ( Northside Rd. Bells Corners, Ottawa) — we’re always happy to chat!