A 50% tariff on anything coming in from India is sure to have some unexpected ripple effects, and one of them is the pre-roll cone industry.
Pre-rolls accounted for $2.3 billion in sales last year, so a substantial increase in their price is no small matter. India handles about half of the world’s cones, with Indonesia taking up the other half. It’s possible that more supply from Indonesia could help offset the higher cost, but at the very least, the tariffs are going to cause a hiccup in a very important sector. Plus, there are already tariffs coming from Indonesia. However, at 19%, they’re much more manageable than the 50% coming from India.
Some companies are going to try to move to automatic cone rolling machines in the US, and some are going to move to China. There are uphill battles in both strategies, including a higher expense and a more hit-or-miss quality, so this is certainly not an easy fix for pre-roll companies.
When it comes to the consumer, we’ll see if they accept the higher cost, move on to a different form of marijuana, or buy less in general.
Read the original article at MJBizDaily.
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