Proposed US Tariffs Threaten Vaporizer Industry
The US vaporizer industry is in a panic over proposed 25% tariffs on Chinese products. This would affect pen devices, hardware and batteries. China dominates the worldwide vaporizer hardware market.
“The rationale behind this administration’s trade war against China is twofold: stealing American jobs and stealing American IP and know-how,” Arnaud Dumas de Rauly, co-founder and co-CEO of the New York-based vape company, The Blinc Group, tells Freedom Leaf. “However, as it pertains to vaping products, none of these jobs and know-how are in the US to begin with. The cannabis industry will suffer from these tariffs.
“The supply of raw material isn’t big enough in the US to support a switch to US manufacturing,” he continues. “The skillsets aren’t in the US either. Bottom line, these tariffs will not bring jobs to America. In addition, given the small margins (10-15%) on the hardware, the cost of these tariffs will be passed on to consumers, which will limit patient/consumer access to cannabis products, especially in states like Florida and New York, whose medical programs relay on vaping products. Finally, the regulatory uncertainty is already stifling the