Although Canadian cannabis is not directly impacted by the emerging trade war with the US, many aspects of the cannabis industry supply chain could be.
This can mean increased costs for producers, and those costs being passed on to consumers.
With cannabis still not legal in the US, cannabis imports or exports between Canada and the US are off the table. While there have been some rumblings of tariffs on Canadian cannabis being sent to Israel, for the most part, Canada’s actual cannabis products are not feeling the pinch of the emerging tariff wars.
The packaging used for those cannabis products, however, as well as some of the equipment used in the different steps of cultivation and processing, can be.
Two of the most significant cost increases for SNDL, a publicly traded company that operates in the Canadian cannabis space in both production and retail, are the costs of mylar packaging and aluminum cans. SNDL sells an array of cannabis products, from dried flower, vapes, and edibles, to beverages. It operates a dedicated beverage production facility for both cans and bottles in Bolton, Ontario.
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