Why Tariffs Are Hurting N.Y.’s Cannabis Industry

March 25, 2025

Legal weed is grown in New York State, but items used to grow it are often imported and now are subject to the Trump administration’s tariffs.

Good morning. It’s Tuesday. Today we’ll look at how the Trump administration’s tariffs are affecting the cannabis industry in New York. We’ll also get details on why a city child care program may collapse if the State Legislature does not come up with additional funding.

ImageTwo hands hold three boxes of cannabis products.
Credit…Hiroko Masuike/The New York Times

You might not expect to hear state officials who regulate the legal cannabis industry in New York discuss the Trump administration’s tariff policy, but my colleague Ashley Southall did. She writes that those officials, and many cannabis growers and retailers, are worried about the administration’s tariff on goods from China.

The Trump administration’s 20 percent tariff on items imported from China — added to an already existing 25 percent levy on imported agricultural products and supplies used by the legal marijuana industry — is driving up prices for farmers, manufacturers and retailers just as the cost of legal weed is coming down.

State regulators are watching. “Anything that might implicate the way cannabis consumers budget for or prioritize cannabis spending will have a real impact on our industry,” John Kagia, the policy director of the Office of Cannabis Management, said last week during a meeting of the agency’s oversight board.

Some retailers say the tariffs have put them in a desperate bind.

“We’re going into the season knowing that we are going to lose money,” said Karli Hornick-Miller, co-founder and chief executive of Florist Farms in Cortlandt, N.Y., which grows cannabis and sells marijuana, prerolled joints, and gummies, along with vape pens and cartridges.

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