Trump Tariffs Threaten Cannabis Pre-Rolls

OG Article By Margaret Jackson Watch Today's LIVE Episode on X and Rumble

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September 22 2025

Overview

The Trump administration's 50% tariff on Indian imports hits the cannabis industry's fastest-growing sector: pre-rolls. Sales reached $2.3 billion last year, per Headset.

Supply Chain

India supplies half of global pre-roll cones. Indonesia supplies the rest. Few alternatives exist outside India, Indonesia, and China.

Cost Impact

Cones cost 3-8 cents each. A 50% tariff adds 8-20 cents per five-pack. Retail prices may rise 20-60 cents per pack, says Hirsh Jain of Ananda Strategy.

Operator Choices

Companies face options:

• Absorb costs and cut margins.

• Raise prices for consumers.

• Switch to suppliers like Indonesia or China.

Challenges

• Indonesia faces lower tariffs (15-19%).

• China's quality is often poor.

• Switching disrupts branding; custom cones are key.

• Some turn to stock cones from Zig-Zag or Raw.

Border Issues

RollPros CEO Kyle Loucks reports shipments blocked. One seizure hit all items due to a THC stamp error. This delays production and raises costs.

Adaptation Efforts

• Custom Cones USA eyes U.S. machine-rolling.

• RollPros explores domestic tip production.

• Raw uses Europe and Indonesia for quality.

Tariff Evasion

Some importers:

• Mislabel products as "Made in France" to cut tariffs to 15%.

• Underreport invoice values by 90%.

Market Outlook

Impact varies by state. High-price markets may absorb costs. Price-sensitive ones face disruptions. Jain warns against quick supplier switches amid policy flux.

Broader Concern

High tariffs encourage rule-breaking, says Raw's Josh Kesselman.