Tariffs Tighten the Lid on Cannabis Packaging
When cannabis entrepreneurs thought the road couldn’t get any rougher—between banking hurdles, shifting regulations, and volatile markets—tariffs entered the equation. The latest trade policies are driving up costs for packaging, raw materials, and essential components, forcing businesses to rethink their supply chains.
“Supply chain for cannabis is already a challenge,” said Tony Reyes, President of CannaCarton, a leading U.S.-based packaging manufacturer. “Throw in tariffs, international turmoil, and everything else, and it’s enough to make business owners want to throw up their hands.”
The Cost of Staying Local
CannaCarton has an advantage over some competitors—most of its products are manufactured in the U.S. using North American raw materials. But that doesn’t mean they’re immune to rising costs.
“Some overseas-sourced components, like additives in ink, have gone up in price,” Reyes explained. “It’s marginal for us because of how we buy in bulk, but it’s still an added cost that stacks up over time.”
While tariffs are making imports from China and other countries more expensive, it hasn’t necessarily leveled the playing field for U.S. manufacturers—at least not yet.
“Getting things made in the U.S. will probably always be more expensive,” Reyes acknowledged. “But American manufacturers are working hard to stay competitive, especially in an industry that’s been very open to sourcing from overseas.”
Trust, Transparency, and Sustainability
For cannabis brands deciding between domestic and overseas packaging suppliers, price isn’t the only factor. Reyes argues that American-made packaging offers advantages in quality, trust, and sustainability.
“You can visit our factories. You can see the certifications we have—GMP, ISO, SQF level three. Everything we do is audited by third parties,” he said. “With overseas vendors, there’s always that uncertainty. Are they cutting corners? Are they counterfeiting? Are materials really what they say they are?”
CannaCarton also touts its sustainability credentials. “Our paperboard is FSC and SFI certified, and we offer post-consumer resin, ocean-bound plastics, and other eco-friendly options,” Reyes added.
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Investing in the Future
Beyond just keeping operations local, CannaCarton is also investing in its workforce and communities. “We’ve got 270 employees across three locations, and we make sure they’re taken care of,” Reyes said. “We pay a living wage, offer loan assistance, and even provide English language lessons for non-native speakers.”
Looking ahead, the company is focusing on innovation. “A lot of cannabis packaging is the same. We’re working on child-resistant solutions that are not just compliant but better than what’s currently available,” Reyes teased.
As the industry continues to navigate economic headwinds, one thing is clear: companies that can adapt to these changes—whether by manufacturing locally, diversifying suppliers, or innovating new solutions—will be the ones that survive. For Reyes and CannaCarton, that means staying ready for whatever comes next.
“Tariffs are just another challenge,” he says. “And in cannabis, we’re used to challenges.”
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